Chip shortage makes Car shortage

check out this chip-less air conditioning

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Certainly not a start up! After retiring I worked for an electronics manufacturer/board manufacturer named Cherry Electrical that had several plants near Kenosha WI. Made lots of boards for HD, GM and several others.

Typical large family owned company. When the old man died the oldest son sold lots of pic and place machines and moved EVERYTHING to China and Juarez.
The best switches were made by Cherry.
 
Not for an actual chip fab. Those things are big money, subsidized by the countries that run them. I had a friend that did environmental crapola for Intel at their 'experimental' fab in the bay area. Just keeping that thing EPA compliant was crazy hard and expensive. It's better to run them in shithole countries where they can just dump their waste into the rivers and kill off random segments of their population. I mean, what, are we supposed to pay more for our iphones and random electronic junk in cars??
My dad worked at a company in Nassau County, LI NY, they would dump the waste down the storm drains. Common for all the companies there. Even Hooker Chemical got caught. High levels of breast cancers for all the women in Nassau County. All the pollution got into the aquifer and that is were the water supply comes form.
 
I'd been hearing about the chip shortages but, I'm not car shopping so haven't really paid attention... Until yesterday.
Was talking to my sister in Michigan, she told me that my brother in law (her husband that has worked at Fords rear end plant in sterling heights for 28+ years) was waiting to hear if he would be laid off... He was.

He was told that Ford had enough chips for "7-10 days of production"
while chips don't directly affect his plant, ford doesn't want to stock pile rear ends so, he's getting some time off.

America is so screwed!
We depend on our enemies and governments that hate us.
 
And the used car market is on fire.
If you're looking and find one, be ready to jump.

For about three weeks I searched and narrowed down what I wanted, three out of five vehicles sold the day that I was on the way to drive them. The other two sold the day before.

I noticed quite a few of the vehicles were from NY and NJ. Those were marked off of my list immediately. Anything decently priced is selling very quickly.

Started to look at new ones and got a fantastic deal on a brand new vehicle that I couldn't pass up. The dealership is a big one in Raleigh, their lot was noticeable thin on new cars.

So evidently, the Kia Telluride is the hottest car in the nation right now.
A friend is looking for one, multiple dealers have told him there's a 3-4 month wait and they're selling for $5k - $8k over MSRP. That's crazy.
 
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I’m going to be in the car market soon. My daily commute has ver 330,000 miles on it. Planning on getting a Subaru WRX. I’ll probably get crunched because of this nonsense. Anyone with the sense that god gave a horse could have told you selling everything off to China would bite you in the rear end.
 
That’s as cool as the backside of the pillow. What is it?
'64 Mercury Parklane convertible. Would LOVE to find one with the 427 Super Marauder & 4-spd.

'64 was the last year they raced full-size Mercs. Bill Stroppe fielded quite a team of them, with Parnelli Jones, Darel Dieringer, & Johnny Rutherford driving them.

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When I WIN the Powerball... 😏... you're gonna see me on EVERY episode of "Counting Cars" for years to come - I wanna restore and restomod a fleet of these things!

Can't find a decent example of my dad's '64 - here's a dealer catalogue picture. Montclair, 2-dr. breezeway. His looked JUST like this - Polar white.

1629418571483.png We had a 2-dr. Monterey fastback in the backyard, as a parts car. When I was 14, I stripped almost the whole car, and stored it in its own trunk! Dad was both ticked AND impressed! 😆
 
My dad told me the big Mercs were great, for 400 miles per race in NASCAR. Weak tie rods and oil lines were often their undoing in the LAST hundred miles though. D'oh

Here's Johnny Rutherford tangling with Ned Jarrett, and sliding his on its roof for hundreds of yards at the Daytona 500 that year.



They were actually pretty good on road courses, winning Riverside & the Pike's Peak hill climb in '63. :oops: With 3+ feet of overhang BEHIND the rear wheels, I cannot reconcile those two facts with the laws of physics!
 
And this thread was started back in January. What's the holdup on the chips?

.

Can't ship the chips if the companies which produce them aren't making them because they don't have the people to run the factories, or the raw material coming in to make the product.
 
Can't ship the chips if the companies which produce them aren't making them because they don't have the people to run the factories, or the raw material coming in to make the product.
Is this due to the Chinese virus or something else? I doubt it is because they’re being paid to sit at home since it’s not the US.

Personally, I think China is intentionally up to no good as part of their gray zone level of hostility.
 
according to the internet (because i do not REALLY know).....

1. there is a container shortage to ship anything from anywhere.
2. the auto companies ordered less because they thought the virus would stifle sales.
well, the chip companies ramped up for other chip business which is more profitable
leaving them stuck in production and cannot (or will not) retool for car chips.
3. few manufacturers (and one burned down in Japan) make chips.
 
according to the internet (because i do not REALLY know).....

1. there is a container shortage to ship anything from anywhere.
2. the auto companies ordered less because they thought the virus would stifle sales.
well, the chip companies ramped up for other chip business which is more profitable
leaving them stuck in production and cannot (or will not) retool for car chips.
3. few manufacturers (and one burned down in Japan) make chips.

To add on to the shipping delays, I read the other day that there are a massive number of container ships just floating outside of ports on the west coast. No where to unload, container yards are full and a lack of dock personnel and truck drivers to get the containers to end users. Folks also claiming costs to ship a container have shot up 5-10x what it used to be.
 
I saw a truck that dealer had on order that had about 95% of everything I wanted on it about two weeks ago. I put down a deposit to hold it. Still about a week or two till it get to dealer.
Ford dealer in Fuquay had the most I have seen on a lot. Think it was 8-10 F-150
 
My neighbor across the street was telling me that the company he designs for buys containers from China, and in 2020, would cost them $3000.00. They now cost them $21000.00.......yes, thats from 3 grand to 21 grand, per container. 😲 On another note, all of our supplies that we use in our department have went up 15-30%, this year. I just got in 50 sheets of 48x96 palboard (a type of coated foamboard) that we print on, that I ordered in the beginning of July, and that's all they could find me. Crazy times are here, and are not improving.
 
Same story with the containers. One of our factory owners was paying about $2,800 for containers in 2020, two weeks ago he paid $27,000 per container.

The buzz is as we get into the global Christmas shipping times, which is now, Amazon, Walmart, Target, and a few others could pay as much as $100k per container to get their stuff here for the season. Who knows if they get that high, the rates now are causing all kinds of hurt. Small to medium businesses can't keep this up for too long.
 
My neighbor across the street was telling me that the company he designs for buys containers from China, and in 2020, would cost them $3000.00. They now cost them $21000.00.......yes, thats from 3 grand to 21 grand, per container. 😲 On another note, all of our supplies that we use in our department have went up 15-30%, this year. I just got in 50 sheets of 48x96 palboard (a type of coated foamboard) that we print on, that I ordered in the beginning of July, and that's all they could find me. Crazy times are here, and are not improving.

Same story with the containers. One of our factory owners was paying about $2,800 for containers in 2020, two weeks ago he paid $27,000 per container.

The buzz is as we get into the global Christmas shipping times, which is now, Amazon, Walmart, Target, and a few others could pay as much as $100k per container to get their stuff here for the season. Who knows if they get that high, the rates now are causing all kinds of hurt. Small to medium businesses can't keep this up for too long.

I may have missed something upstream, but are you guys talking about empty shipping containers?
 
from what i understand, the manufacturers cut back orders due to the virus.
so...the chip makers retooled to make higher-price, better-margin chips.
now, the chip makers are swamped with new orders and "ain't going back".
if the car companies want to pay the going rate for chips, they might get some.
Same story for every industry
 
update:

Starting on Monday, General Motors will temporarily halt production at all but four of its North American factories due to chip supply constraints.

 
update:
The global chip shortage is giving rise to a small group of little-known companies whose products are increasingly essential to the plans of semiconductor industry titans.
The companies make parts called substrates, which connect chips to the circuit boards that hold them in personal computers and other devices.
.... expecting the chip crunch to last into 2023 as the chip industry, including substrate suppliers, boost capacity.

 
update:
The global chip shortage is giving rise to a small group of little-known companies whose products are increasingly essential to the plans of semiconductor industry titans.
The companies make parts called substrates, which connect chips to the circuit boards that hold them in personal computers and other devices.
.... expecting the chip crunch to last into 2023 as the chip industry, including substrate suppliers, boost capacity.

So who should I invest in?
 
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