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Report - Ford Vehicle Production Threatened By Potential Microchip Shortage

Bronco4lyfe85

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That sounds like artificial inflation personally but I'm no economics professional. It makes no sense that any item should cost more when made here at home than in a sweatshop 5000 miles away when you take into consideration getting it here and distributed. I was always taught consumers decide an item's value and demand while the manufacturer drives supply. If the consumers say they want a product (automobile), but the maximum amount the consumer will pay for any brand new automobile is $40k, guess what has to happen? Prices have to fall in order to get the consumer to buy it. So really all that has to happen to drive auto prices down is a majority of people to say that the max price of any new automobile shall not exceed $40k. I know, that's very idealistic but we can dream can't we lol?
That’s a great thought but people also want to make $36 an hour to work a drive through window so unfortunately it doesn’t add up lol.
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North7

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In my second life I worked for a huge company. They always has 2-3 manufacturers for the same item just in case one had production problems. I figured Ford, or any other large corporation would do the same if possible. However, my company never had to deal with the black plague sweeping the world.
The problem with electronics, many components are vendor specific, unlike something simple, say like the memory chips in your PC, that are generic and designed to the same spec across brands. In custom designed electronics, built for various purposes, many circuit specific chips are not generic, like CPU's, they have their own unique interfaces, electrical signals, timing, interrupts, etc. etc. You cannot just design an electronic product with one vendor's chips and swap out another vendor's chips.

Products in certain industries, such as automotive and aerospace, where you have the same car driving or the same aircraft flying for ten years plus, you have to maintain Engineering teams to redesign some products when the chips go obsolete. You can do a lifetime buys of unique chips for the anticipated production run plus future spares, but this too has it's expense and challenges, depending on volume and length of support.
 

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That sounds like artificial inflation personally but I'm no economics professional. It makes no sense that any item should cost more when made here at home than in a sweatshop 5000 miles away when you take into consideration getting it here and distributed. I was always taught consumers decide an item's value and demand while the manufacturer drives supply. If the consumers say they want a product (automobile), but the maximum amount the consumer will pay for any brand new automobile is $40k, guess what has to happen? Prices have to fall in order to get the consumer to buy it. So really all that has to happen to drive auto prices down is a majority of people to say that the max price of any new automobile shall not exceed $40k. I know, that's very idealistic but we can dream can't we lol?
The two questions one has to ask themselves is 1) Are you or anyone you know willing to work for sweatshop wages. 2) If the answer is no and no one is willing to pay 50k for a base Bronco what do you think happens to it? It doesn’t get produced...
 

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The problem with electronics, many components are vendor specific, unlike something simple, say like the memory chips in your PC, that are generic and designed to the same spec across brands. In custom designed electronics, built for various purposes, many circuit specific chips are not generic, like CPU's, they have their own unique interfaces, electrical signals, timing, interrupts, etc. etc. You cannot just design an electronic product with one vendor's chips and swap out another vendor's chips.

Products in certain industries, such as automotive and aerospace, where you have the same car driving or the same aircraft flying for ten years plus, you have to maintain Engineering teams to redesign some products when the chips go obsolete. You can do a lifetime buys of unique chips for the anticipated production run plus future spares, but this too has it's expense and challenges, depending on volume and length of support.
Thanks for the explanation North. I did not know that. But I'm old, and quite technologically challenged. :) It is true though, you learn something new everyday. (y)
 

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Ah the joy when your supply chain for everything in America runs through China.....
 

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Pfffttt!

Ford Bronco Report - Ford Vehicle Production Threatened By Potential Microchip Shortage 89954388-E3DC-41C9-BCDD-F998E97DA1F4
 

Lowcountry Bronco

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I heard GloboTech Industries has a bunch of surplus DoD spec microchips Ford could use.
 

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The two questions one has to ask themselves is 1) Are you or anyone you know willing to work for sweatshop wages. 2) If the answer is no and no one is willing to pay 50k for a base Bronco what do you think happens to it? It doesn’t get produced...
You don't need to..in the 1940's through the mid 1970's you only needed one household earner to have a nice home, car etc. you had way more children and less suicides.

Today very few households are a single earner, less children (if any), suicides are crazy high, at that time we imported nothing , we made everything here. 1971 it all changed..china was a poor country it was having food crisis..at that point we moved manufacturing from USA to china, 40 years later we went down and now they are wealthy and about to take the top spot in the world. Not because they did anything special but offshore our wealth to them.

When an item ..let's say a pair of shoes is made in china ..about $2 to make, they sell for $80 and up in the USA.. obviously the cost savings doesn't go to the consumer..it all gets pocketed.

Soon for you "electric car lovers" you won't be able to own your car. You will be on a platform..this is much harder to do with gas powered vehicles. The car will drive you, you will be a user of the platform and pay a nominal fee. If you are bad they will deplatform you ..then what? Ride your bike I guess. Tesla already does this ..when you buy a Tesla used they can remotely turn off options and there isn't a damn thing you can do about it. But hey you will have agreed to the terms..they are a private company..get off their platform.

Btw ..Chinese don't work for slave labor anymore ..it not our wages but they are rising fast there.
 

BroncoBuckaroo

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My post absolutely had no politics in it..gets deleted because it said it had politics in it.

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