EXPECT FURTHER DELAYS - More auto semiconductor chip problems

[North7]

They said nothing like the above post. He suggested that we would make mistakes in building them too fast trying to catch up. I believe they likened it to a line cook making a hamburger.
You can’t assume that Ford is going to accept Lower grade silicon for their parts. That would require a complete DV/PV which would result in potentially longer delays than just waiting for the supply base to catch up.

I am only trying to help other users not freak out that they are getting shitty silicon when there are checks in place to prevent that.

In another real time example of hamburger binning, rare, medium or well down. I recently purchased a new Dell laptop. I then bought a second power supply from a vendor, that I thought was a genuine Dell part, they advertised the Dell part number, but what I was sent was a power supply that looked nearly 100% identical but was made by Flextronics, a Dell supplier.

Now that I've used it for a month, when it is charging and I'm running several programs, it gets hot and shuts off. What I'm guessing is these failed the binning test on units to ship to Dell and the lower grade units get shipped to liquidators, third party sellers, Ebay sellers, etc. Sure I got it for a good price but now I have to return it for another unit.

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[TheBuster15]

In another real time example of hamburger binning, rare, medium or well down. I recently purchased a new Dell laptop. I then bought a second power supply from a vendor, that I thought was a genuine Dell part, they advertised the Dell part number, but what I was sent was a power supply that looked nearly 100% identical but was made by Flextronics, a Dell supplier.

Now that I've used it for a month, when it is charging and I'm running several programs, it gets hot and shuts off. What I'm guessing is these failed the binning test on units to ship to Dell and the lower grade units get shipped to liquidators, third party sellers, Ebay sellers, etc. Sure I got it for a good price but now I have to return it for another unit.

You are spending too much time on the build and price tool. How many bronco builds per charger are you cranking out?

 

[Broncodave]

Don't shoot the messenger.


"But Wu isn’t celebrating. His whole business is built around giving customers what they want, so his inability to meet their requests at such a critical time is frustrating. He doesn’t expect the crunch, especially for automotive components, to end any time soon.

“We have not reached a position where we can see the light at the end of tunnel yet,” Wu said."

Why Shortages of a $1 Chip Sparked Crisis in Global Economy

https://www.msn.com/en-us/money/oth...-sparked-crisis-in-global-economy/ar-BB1fkxEy

 

[JustADudeWhoThinks]

Don't shoot the messenger.


"But Wu isn’t celebrating. His whole business is built around giving customers what they want, so his inability to meet their requests at such a critical time is frustrating. He doesn’t expect the crunch, especially for automotive components, to end any time soon.

“We have not reached a position where we can see the light at the end of tunnel yet,” Wu said."

Why Shortages of a $1 Chip Sparked Crisis in Global Economy

https://www.msn.com/en-us/money/oth...-sparked-crisis-in-global-economy/ar-BB1fkxEy

Great read. I'm hoping we don't get too hung up over $1 parts from Ford, tbh they should know we would all pony up $6 for those parts if it meant our Broncos keep rolling off the line...

...when scarcity hits, outbid!

 

[DadLife]

https://www.wsj.com/articles/renesa...erns-about-global-auto-production-11616414181

"TOKYO—A fire at a factory of one of the world’s leading auto chip makers has added to the troubles of car makers that already have slashed production because of a semiconductor shortage.

The fire Friday left a swath of charred equipment in the factory owned by a subsidiary of Renesas Electronics Corp. RNECY 2.10% in Hitachinaka, northeast of Tokyo. The company said it would take at least a month to restart the damaged operations."

" Renesas’s chief executive, Hidetoshi Shibata, said Sunday the impact on global chip supplies would be significant. Mariko Semetko, a credit analyst at Moody’s Japan, said the fire was likely to damp the recovery of global auto production this year, while auto makers said they were still assessing the impact. "

Expect further delays!

Thank you for this information... obviously there is a chip shortage, but does anybody know if this will cause Ford to use alternative chips that have a negative effect on EPA? I posted a thread as a friend was telling me some manufacturers were doing this and the buyers were getting more like 12/13 mpg when the vehicle would advertise 18ish

I’m hoping Ford doesn’t do this with bronco. I ordered an OBX non Squatch 4d... so I was hoping I would average btwn 18 and 20 mpg as I will be driving to the office in this every day

 

[Broncodave]

 

[mhtucker78]

Moar cuts... No MAP on the list though.

https://www.cnbc.com/2021/04/08/gm-cutting-production-at-several-plants-due-to-chip-shortage.html

 

[Broncodave]

Why the Chip Shortage Is So Hard to Overcome

"The bad news is, there are no quick fixes, and shortages will likely continue into next year, according to the industry’s executives. "

"The supply crunch was exacerbated by U.S.-China trade tensions, especially during the past year, including Washington policies that gradually restricted the sale of American-designed or -made chips to some Chinese buyers. Fears of sanctions prompted tech companies in China to stockpile chips and prepare for the worst..."

“Now [the Chinese companies] are stockpiling for one month, three months, or even six months, and they have disrupted the whole system,”

https://www.wsj.com/articles/why-th...ard-to-overcome-11618844905?mod=djemalertNEWS

 

[Razorbak86]

U.S. Auto Dealers Are Winners As Chip Shortage Lifts Vehicle Profits
BY Reuters
— 6:17 AM ET 04/26/2021

https://www.reuters.com/article/aut...-shortage-lifts-vehicle-profits-idUSL4N2MG3LO

By Ben Klayman and Ankit Ajmera

(Reuters) - Mike Bowsher shakes his head in wonder when he hears yet another customer at one of his Buick-GMC dealerships near Atlanta has agreed to pay full sticker price of more than $71,000 for a top-of-the-line GMC Yukon XL Denali SUV that is still being assembled at a General Motors (GM) factory.

Customers know what Bowsher has arriving by scanning the online inventories of his six stores in the region, and they are often willing to wait more than a week and pay full price to get their desired vehicle.

"I'm selling about 150% of what I have on the ground," Bowsher said. "We are selling stuff so far up in the pipeline that they're putting money down on 'in-process,' which is in the plant."

Automakers from GM to Ford Motor (F) and Toyota (TM) have cut production this year due to the global semiconductor chip shortage. While those automakers have been pinched, dealers are experiencing the best of times. Not only can they charge full price for the hottest-selling trucks and SUVs, but many also have reduced promotional spending and other costs required by full vehicle lots.

"I'll take this till I'm six feet under," Bowsher said. "Customers are coming in just saying, 'I'll take it, full sticker, get it ready.' It's nuts."

This means record profits for car dealers.

AutoNation Inc (AN) Executive Vice President Marc Cannon called it "Camelot," comparing it to the legendary castle and court of King Arthur. He wondered whether this could turn into the new operating model in an industry where consumers in the past were conditioned to seek incentives and rebates that reduced vehicle prices by 10% or more.

Profits at AutoNation Inc (AN), the largest U.S. dealer chain, almost tripled last week as gross profit per new vehicle soared 61% to more than $2,700 in the first quarter. Rival Lithia Motors (LAD) saw its profit per new vehicle jump 33% to $2,910 as its quarterly results trounced expectations.

The good times won't likely end soon as many industry officials see the chip shortage lasting into 2022. Many dealers report thin vehicle supplies, in some cases as low as 15 days worth.

At his company's Toyota (TM) store in Maine, Todd Skelton, chief executive of Prime Automotive Group, had 62 cars in mid-April, down from the typical 300 vehicles.

"We're now beginning to see not only the depletion of what we had in stock, but nothing following behind it," said Skelton, whose company has 32 stores in New York, New Jersey and New England across multiple brands.

One concern of Skelton's is whether reduced supply will drag down overall profits despite higher margins.

And demand is not high for just new cars, as used-car prices are also rising, dealers said.

"If all of a sudden, I don't have a lot of 2021 Santa Fe's, I'm going to want as many 2019 and 2020 Santa Fe's as I can find," Andrew DiFeo, dealer principal at a Hyundai dealer in St. Augustine, Florida, said.

Not every dealer is ebullient.

Jim Seavitt, who owns a Ford dealer near the No. 2 U.S. automaker's Dearborn, Michigan, headquarters, said dealers celebrating now could be hurt later if inventories continue to fall.

"They think it's a light at the end of the tunnel, but it's a freight train," he said. "I've got 150 cars on the ground. I've got maybe 30 cars coming next week. I sell 225 a month. Why would I be rejoicing right now?"

(Reporting by Ben Klayman in Detroit and Ankit Ajmera in Bengaluru; editing by Diane Craft)

Copyright © Reuters 2008. All rights reserved. Republication or redistribution of Reuters content, including by caching, framing or similar means, is expressly prohibited without the prior written consent of Reuters. Reuters and the Reuters sphere logo are registered trademarks and trademarks of the Reuters group of companies around the world.

 

[davesell]

This problem goes back to the 1980s when the computer revolution started and we wanted 2-3K computers so we had to get cheap labor to make them… now all the China, India and Japans own that ability to make these chips and very little of it is in the US.


Note that Toyota and Honda are never mentioned in the chip shortage - why is that??? Neither is Dell or Apple?
I feel it is a organized method to bring the current American auto industry to its knees, then they will have all new “Tesla-like” companies pop up that have no issues getting the tech they need to build vehicles and they will all be electric. I smell a RAT in this and there is a deeper plan.

 

[North7]

This problem goes back to the 1980s when the computer revolution started and we wanted 2-3K computers so we had to get cheap labor to make them… now all the China, India and Japans own that ability to make these chips and very little of it is in the US.


Note that Toyota and Honda are never mentioned in the chip shortage - why is that??? Neither is Dell or Apple?
I feel it is a organized method to bring the current American auto industry to its knees, then they will have all new “Tesla-like” companies pop up that have no issues getting the tech they need to build vehicles and they will all be electric. I smell a RAT in this and there is a deeper plan.

So the JIT - Just In Inventory, approach to modern manufacturing nor the fact some auto manufacturers canceled chip contracts during the start of Covid has nothing to do with it?

 

[Razorbak86]

This problem goes back to the 1980s when the computer revolution started and we wanted 2-3K computers so we had to get cheap labor to make them… now all the China, India and Japans own that ability to make these chips and very little of it is in the US.

Note that Toyota and Honda are never mentioned in the chip shortage - why is that???

Toyota, Honda Shut U.S. Factories as Supplies Run Short

Cold weather and port logjams add to problems obtaining parts, while Samsung warns its business will suffer from chip shortage

https://www.wsj.com/articles/honda-to-close-u-s-factories-for-a-week-over-supply-issues-11615954099

Toyota Motor Corp. , Honda Motor Co., and Samsung Electronics Co. said supply-chain problems were complicating their businesses, as freak weather, port blockages and the continued impact of Covid-19 combine to disrupt global supply chains.

Toyota and Honda said Wednesday that they would halt production at plants in North America because of a squeeze in crucial supplies, including plastic components, petrochemicals and semiconductors. Honda also blamed port backlogs and severe winter weather that has frozen plants and pipes across the central U.S. for the disruption.

Separately, Samsung, the world’s largest maker of smartphones, said a severe global shortage in chips would hurt its business into the next quarter. The South Korean company also said it might withhold launching a new model of one of its most popular handsets, though it said the move was aimed at keeping it from competing with an existing handset.

The disruptions underscore how a number of forces are coming together to squeeze the world’s supply chains: from the pandemic-driven rise in consumer demand for tech goods to a backlog of imports at clogged California ports and U.S. factory outages caused by severe weather. The timing is particularly concerning for manufacturers because the U.S. and some other economies are beginning to reopen thanks to vaccination campaigns.

[...]

 

[Lilj4425]

Oddly enough the BMW plant here has had no issues with the chip shortage problem. Go figure.



BMW, South Carolina’s largest automaker, said its plant in Spartanburg County has not experienced any production slowdowns but the German automaker is “monitoring the issue closely” and is in constant communication with suppliers.

“The supply of electronic components to our production sites has so far not led to any interruptions in production,” a BMW spokesperson said. “We have ordered the required volume for 2021 on time and expect our suppliers to deliver according to contract in line with the orders.”

https://www.postandcourier.com/busi...cle_07cf75e0-88c6-11eb-b91c-93c3f3a447a0.html

 

[davesell]

https://www.wsj.com/articles/honda-to-close-u-s-factories-for-a-week-over-supply-issues-11615954099

Good information, I see that Honda states that frozen pipes in US caused issues - really?

 

[TheWoo]

Note that Toyota and Honda are never mentioned in the chip shortage - why is that??? Neither is Dell or Apple?

Google results would indicate that all four of those companies are, indeed, mentioned in chip shortage articles. And the only one indicating it's not impacted/expecting to be impacted currently is Toyota, which has been stockpiling chips since Fukushima.

Or, you can believe it's a global conspiracy to impact the American automobile industry.

https://www.motor1.com/news/495030/honda-halts-production-chip-shortage/

https://www.autoblog.com/2021/03/09/toyota-how-it-avoided-semiconductor-shortage/

https://fortune.com/2021/04/08/chip-shortage-apple-semiconductors/

https://www.itpro.com/hardware/354210/dell-slashes-2020-forecast-over-chip-shortage-fears

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