GM and other auto manufacturers cutting production

[69hurstolds]

Due to the global semiconductor shortage....

Going green and/or off-shoring jobs has its consequences. Want EVs? Want more electronics technology? Then go get a green job. Oh, wait, there's only about 40 of those... maybe you can do it if you open a semiconductor manufacturing plant. And Covid doesn't help, either.

Taiwan and S. Korea make a very large majority, almost a monopoly, of the manufacturing of semiconductors. And depending on one or two countries to get your electronics stuff turns out to be not so smart when the demand skyrockets. So GM and other world auto manufacturers are taking it right up the arse with having to modify schedules to minimize production due to that shortage. Auto companies don't pay premium for semiconductors, but Apple and other high-tech, high-buck companies do. So guess who's last in line?

Car manufacturing hit by global semiconductor shortage

Volkswagen, Daimler, GM and Renault vie with consumer electronics groups for scarce chips

www.ft.com

 

[carnutjw]

Don't know where we get ours (Toyota), but we are running wide open building Highlanders and Siennas.

 

[69hurstolds]

Don't know where we get ours (Toyota), but we are running wide open building Highlanders and Siennas.

My bet is either Taiwan or S. Korea.

Sure, BMW still running full out as well. But for how long? I really think it depends on the contract (read $$) to the providing companies. If you're a big dog, you get preferential treatment. If you're not using enough palm grease, you're in the back of the crowd. As always, someone's getting theirs, but there are some who will not. But prices are going to reflect it big time. Supply/Demand at work.

 

[UNGN]

My Son wanted to order a new 1LE SS (new job, money burning hole in pocket) but the dealer told him "he wouldn't get it for 6 months".

 

[blk7gxn]

Monopoly? Some good points here, but the U.S. is the largest manufacturer in semiconductor. (FACT) In 2018, nearly half of the total semiconductor market occupied by firms were based in the U.S. (according to the Factbook2019 of SIA). Trade wars with China has been the biggest key factor in all this. Some of the decision making out of Washington often looks good on paper, but does more harm then good in the long term, causing more damage to the economy that they set out to protect in the first place.

 

[ck80]

Monopoly? Some good points here, but the U.S. is the largest manufacturer in semiconductor. (FACT) In 2018, nearly half of the total semiconductor market occupied by firms were based in the U.S. (according to the Factbook2019 of SIA). Trade wars with China has been the biggest key factor in all this. Some of the decision making out of Washington often looks good on paper, but does more harm then good in the long term, causing more damage to the economy that they set out to protect in the first place.

IIRC, a large share of rare earth resources are controlled by Chinese or Russian firms - either in their territory, or, one of their state affiliated enterprises holds the mineral lease. Not sure how that affects allocation during the "shortage", but in the past it was a thing

 

[motorheadmike]

My Son wanted to order a new 1LE SS (new job, money burning hole in pocket) but the dealer told him "he wouldn't get it for 6 months".

Yup, Dodge is rolling out Redeyes and TRXs due to maximizing return on what they can produce with remaining stock.

I would hate to see how much downtime my Hellcat would have if it crapped out an ECM or BCM... thank God the transmission processor is a hairless ape.

 

[UNGN]

IIRC, a large share of rare earth resources are controlled by Chinese or Russian firms - either in their territory, or, one of their state affiliated enterprises holds the mineral lease. Not sure how that affects allocation during the "shortage", but in the past it was a thing

Just the Cheap Rare earths. We got them all over the US, but they are cheaper elsewhere, for now.

Most parts shortages are because the low bidder won and higher bidders said "sucks for you, we're busy, now. Get in line".

In Aerospace, I've said "You know, if you had spent $100/part more, you wouldn't have this problem" at least 1,000 times over the last 30+ years.

 

[81cutlass]

Yup, Dodge is rolling out Redeyes and TRXs due to maximizing return on what they can produce with remaining stock.

I would hate to see how much downtime my Hellcat would have if it crapped out an ECM or BCM... thank God the transmission processor is a hairless ape.

You just have to wait a week or two for that youtube whistlin diesel guy to wreck his HC and the parts will be up on the chopping block

 

[Wageslave]

A lot of the problem is that it takes a (relatively) long time for semiconductor lines to be retooled to meet production demands. When COVID hit and everyone stopped buying cars, all the semiconductor companies retooled to produce consumer products to keep their lines running.

They weren't expecting to have the car market rebound as fast as it did, and by that point had contracts that had to be fulfilled to make the consumer based semiconductors before they could retool again to cover the automotive stuff.

It sucks, but hopefully it is only temporary.