As the automotive industry continues to navigate the ongoing global microchip shortage, there are several trends and developments that are worth noting from the week of May 2-8. From new investments in electric vehicle (EV) infrastructure to shifts in consumer behavior, the industry is facing a range of challenges and opportunities.

One key trend is the increasing focus on EVs and the infrastructure needed to support them. On May 6, the Biden administration announced plans to invest $7.5 billion in EV infrastructure as part of its broader efforts to address climate change. This investment includes funding for the construction of 500,000 EV charging stations across the United States, as well as support for the development of EV supply chains and battery manufacturing.

At the same time, some automakers are facing challenges in the production of their EVs due to the microchip shortage. On May 5, General Motors announced that it would extend production cuts at several of its North American factories due to the chip shortage. The company also warned that the situation could impact its full-year earnings.

Another trend worth noting is the impact of the pandemic on consumer behavior. While new car sales have been affected by the chip shortage, the market for used cars has seen a surge in demand. However, there are signs that this trend may be shifting. According to a report from J.D. Power, used vehicle prices saw a decline in the first week of May, marking the first time this year that prices have dropped. This shift in pricing could indicate a leveling off of the used car market and a return to more normal buying patterns.

Meanwhile, some automakers are continuing to innovate and invest in new technologies. On May 5, Hyundai announced that it had developed a new transmission system for its upcoming Ioniq 5 electric crossover. The new system, which uses a single-speed transmission and an electric motor, is designed to improve efficiency and reduce costs. The Ioniq 5 is set to go on sale later this year.

Overall, the automotive industry continues to face a range of challenges and opportunities as it navigates the global microchip shortage and shifts in consumer behavior. While the situation remains uncertain, there are signs that automakers and industry stakeholders are adapting and innovating in response to these challenges.