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Ford Dealers May Not Have New Inventory Until August

Nickp

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It’s hard to imagine just how complex of a problem this must be. From my understanding there isn’t just a “standard” chip that is in short supply, but custom chips of all types that need to be made to an exact specification. I do not envy those engineers and logistics people who are figuring this out it must be a complete nightmare.

Thank god there are people smarter than myself in this world LOL.
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DryYourTears

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Oh, certainly and it would be quite rough, the whole economy of said countries would essentially need a hard reboot. America made everything in the 1950's and thus the products cost more (relatively speaking) but the economy was also as such that factory jobs paid enough for folks to afford a home, kids and a stay at home wife.


Disclaimer: I have a very limited understanding of economics in this regard - I am just a salty millennial who sees everything getting worse, not better. Aka a house near me was just shown SEVENTY TIMES in 48 hours. sold for over asking price. in Cash. What a great time to be in your mid 20's
It's quite a situation we find ourselves in. People got too wrapped up in unmitigated capitalism - have to keep the stock prices high, so what is a company to do? Outsource parts, outsource work, replace employees with contract workers. Stock price goes up, rich get richer, and the cycle continues.

I'm not even saying all outsourcing is bad because some of it makes sense - maybe materials are available elsewhere so you're not shipping raw materials just to produce something in-country, but it's a balancing act. The country wouldn't survive being entirely "self sufficient" because the supplies aren't available, and we also rely on selling things abroad.

As far as price increases for in-country production, it would be even more than paying living wages and health insurance, but the cost of not turning parts of the country into industrial waste disasters (like other places are OK with because they need the money).

In any case, I have no overall solution here. I'm just happy/lucky I purchased a house last year at the beginning of COVID when prices were high but not insane.
 

TurkeyRun

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Man, China can really hold the entire world hostage (so-to-speak). Countries not named China should probably start producing their own stuff.
I may be wrong, but I read a thing that these are Taiwanese sourced chips. China is in play here, as it wants to control Taiwan and that therefore brings the US military into play.

I guess what I'm getting at is this may have more implications than just car parts in the US.

And again, I may be wrong here....
 

Dads_bronze_bronco

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I was shocked how empty the sales lot was at the dealer event Saturday.
 

DryYourTears

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I may be wrong, but I read a thing that these are Taiwanese sourced chips. China is in play here, as it wants to control Taiwan and that therefore brings the US military into play.

I guess what I'm getting at is this may have more implications than just car parts in the US.

And again, I may be wrong here....
Here is a good explainer on what is causing the issues. It's not really a "China trying to control things" situation. Just unexpected demand, supply-side issues (basically not investing enough in being able to produce more). China and Chinese company Huawei are also blaming US sanctions against them for causing people to stockpile chips, but that's not looking it's actually a major contributing factor.
 

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604Bronco

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I popped by my local dealership late yesterday afternoon. I was surprised how few vehicles they had on the lot. I think we're all aware of this issue, but seeing it in-person was eye opening.

I imagine dealerships are seeing more "factory order" builds from customers vs. just buying whatever may be on the lot. Could lead to a long time for dealership lots to be replenished if that keeps going.
 

AKBronc49

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It's becoming a real problem for me at work also. We upfit new work vehicles and I have two contracts for this year with new Chevy and Ford trucks. Well the entire timeline of both projects has been shifted to later in the year/early next. Leaving a potential hole in our summer work.

I work very closely with the big 3 fleet dealers and they are all worried. Currently the only trucks that seem to be flowing are Rams but no idea how long that will last.
 

flip

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Not only is the new supply bad, used prices are through the roof. Something you may have bought $3,000 back from retail a year ago is going for $3,000 over now. Had one we booked out that average auction was $4K over what the guy paid for it two years ago. Absolutely nuts right now.
 

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I'm a large Ford store. I normally have anywhere from 2000-2300 vehicles on my lot. I am currently sitting at a little over 1200. It's only going to get worse the next few months. I'd say 6-12 months may be realistic.
 

MorgansRun

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I don't need them to have inventory, I just need the one I ordered.

Off topic: All OEMs should just move to an order-only model. (I'm not saying like Tesla.) Dealers can still make money with service, parts and F&I. I know it'll never happens, but it's nice to dream.
 

pan-y-cerveza

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My local Ford dealer has probably less than a quarter of it's usual stock. Maybe 30 vehicles or so. 50% of that stock is Edges, Escapes, and white Transits. The few trucks they do have are here today, gone tomorrow.
 

zrizik99

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The local ford dealer around here has barely anything left on their lot. I've never seen it this bad.
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