How the Chip Shortage Is Forcing Auto Makers to Adapt | WSJ
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- Опубликовано: 25 авг 2024
- The number of semiconductors in a modern car, from the ignition to the braking system, can exceed a thousand. As the global chip shortage drags on, car makers from General Motors to Tesla find themselves forced to adjust production and rethink the entire supply chain. Illustration/Video: Sharon Shi
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#WSJ #ChipShortage #Automobiles
0:35 chips weren't "diverted". Car manufacturers predicted a demand cliff and cancelled their orders, with that supply quickly being bought up by other industries.
Exactly. Poor supply chain decision-making for sure.
Yes this is exactly what happened. Hard to feel sorry for them when they (the auto manufacturers) created this whole situation.
Which Industry are you talking about?
BMW didn’t cancel their orders and are now snapping up serious market share from their competitors
@@evacody1249 One example is the computer industry, namely the CPU and graphics chips. Those cryptominers are buying so many graphics cards that there is not nearly enough cards around for the normal consumer (and is one reason why graphics cards are so expensive nowadays).
2:08 wsj dont switch between revenue and profits so chalantly, cmon man
But.. but.. how else would they manipulate the narrative.
@@alexanderlanglois5897 by comparing apples to oranges
They're owned by Bezos, it's all propoganda.
@@arunmfive Bezos? No. Propaganda? Yes.
First one it also said 1st half 2nd one it was the 2 quarter profits only
They are removing features, but are they decreasing the price to match. Doubtful
Yeah considering the prices of cars have been skyrocketing now it’s hard to believe
BMW already said even when chip shortage eases they will limit delivery of premium vehicles to maintain the hefty price increases over the pandemic. These unethical business practices are sickening. I hope BMW gets stung hard by competitors because of this.
@@NickLiang kind of stupid thinking in a way imo. Fine, do that BMW, I just won't buy a brand new car off you then. Same when you go to the cinema and they charge £4 for a bag of chocolate. Fine by me, I'll just go elsewhere, you're just shooting yourself in the foot
Inflation is through the roof. That plus decreased automobile manufacturing output means you should absolutely expect prices to increase.
@@MayTheSchwartzBeWithYou Well they should absolutely expect sales to decrease then
If i didn't appreciate this before, i definitely now appreciate owning a car that's almost paid off. Thankfully don't need to go to a dealership for a few years and getting even more ripped off due to limited inventory.
Agreed! I bought a new vehicle just before the pandemic hit, and then regretted it, as I worried about economic instability. Now I’m really glad to have done it. I’m within a year of paying it off now.
Until some cocksuker t bones you running a red light and not only are you trying to buy a car or truck try to rent one before you go buy one
This. 2016 Corolla owner who is super stoked, just paid it off at the start of lockdown
If you have a newer car and it is almost paid off, it's lifespan is also almost over. Unlike the '60s and '70s vehicles I drive, newer vehicles cannot be kept going indefinitely.
@@geraldscott4302 new account fudder, yea sure new cars are dead in a couple years, got any apocalypse predictions too?
Not only chips, almost everything on the chip board is shortage also including chip boards or the rare earth ingredients.
For someone who doesent know what kind of earth ingredients are used
The title should have read "ARTIFICIAL SCARCITY." "Shortages" are 100% purposeful, more putrid than the bot scalpers taking all the PS5's and X Box's last holiday season. There is NO real shortage, it is being done on PURPOSE to increase the pricing of the goods containing the chips.
@@GentileMysteriesConspiracies There isn't a shortage of capacity from 10nm node and beyond?
@@GentileMysteriesConspiracies I'm sure all these companies are reducing their profits on purpose. You're so smart.
@@GentileMysteriesConspiracies making use of your username, I see.
Can't wait for their Flintstones Edition release.
I got all the torque I need in these thighs
Yabadabadoo! ( ͝° ͜ʖ͡°)ᕤ
Get rid of lux touch screen buttons an such, instead of using over 1000 semi conductors use 500,basically go back to making reliable 80-90s vehicles
@@groundwork1962 🤢🤮
The Flintstone Edition has been delayed. They ran out of birds for the horn
The automakers thought they could bully the chip manufacturers like they could the tier 1 and lower auto suppliers. OEMS have even made companies go bankrupt through their bullying (looking at you GM). I'm not sympathetic to them at all.
Oh, here in Europe I’d say GM was a playgroundbully with Volkswagen being the football hooligan….
In the United States, US auto makers have a reputation of trying to bully suppliers by not accepting their up front advice then when changes are made they beat up the suppliers on quality and price. The Japanese auto makers have a reputation of being so much easier to work with and the whole process is much smoother.
😂 Obviously, we shouldn't be reliant on third world manufacturers with corrupt socialist leadership. Obviously, car manufacturers are lying . These " chips " aren't hard to make.
How ironic. With Just-in-Time inventory, they rather have a low inventory of tiny computer chips, and have a high inventory of unfinished vehicles to fill several parking lots seen from space.
You're rewriting the narrative. They clearly don't prefer that. What are you trying to achieve by making up stuff to complain about?
@@chisquare5701 Do you not believe your lying eyes. Some freshly minted MBA grad convinced mgt that short term profits are what shareholders value the most over long term survivability
@@suffer4fashion they burned out already. They recently announced production cuts.
If it wasn’t for JIT, they likely wouldn’t have survived until 2021 - pull your head in and read a book called ‘The Machine That Changed The World’.
No, high inventory of unfinished vehicles is the aftermath of low inventory for semiconductors. They don't chose between low inventory of semiconductors and high inventory of unfinished vehicles. For now, they would rather fill their parking lot than shut down their production line because they are still hoping that they would get enough semiconductors in the future and keep their employees working. But yes, I understand that Just-in-time system is fragile.
Just push the seat forward and backward with a lever. How hard it could be. The same can be done to steering column. Todays cars are unnecessarily made more complicated.
Yeah, it's not that hard to go back to simpler analog systems without making customer sad or not getting cars at all.
That also goes to car buyers. Buy cars with features that you need, not the features that are unnecessary
Just leave alone power train, safety feature and cruise control to be controled by electronic. The rest of the car can be reverted back to analog without serious consequenses. HVAC, infotaiment sys, lightning control, seat adjusment all this thing can be run by analog
the more complicated the more money they make for repairs why ever get a Moonroof? so after the 3 year manufacture it leaks or doesn't close which cost you thousands in repairs
Amen
Some dealers near me have moved to an order at the dealer/at home, deliver the car at home set up. They're not stocking nearly as many cars at the dealership anymore.
According to VW president he said that the days of stocking dealerships with hundreds of cars are gone. The new paradigm will be made to order factory ordering. They will have indefinite short supply of vehicles on the lot.
The business model of dealers ordering a bunch of cars was doomed from the start. Actually this isn't really a thing outside of North America
The custom factory order system is just for now due to very low inventory. After the chip shortage is over, Toyota, Kia, Hyundai, Nissan lots etc. will be full of vehicles.
@@JohnS-il1dr VW are fools. After the chip shortage is over, car buyers will simply buy a Japanese or Korean car instead and VW will lose market share.
Chip shortage? Not where I live. Plenty of Lays, Cheetos, Doritos on the shelves.
Over here people are panic buying potato chips. Vendors can barely keep them in stock at Sam's Club
@@patrickm.4469 "Land whales," not people.
Potato 🥔❤️
Only If Doritos Could Run Teslas
LoL
They are welcome to come and get my engine stop-start chip. I always make sure that it doesn't work.
Covid has taught a lot of lessons. Those that learned from these lessons are going to thrive.
Really, want to believe that but I don't think that happening. Only Tesla has really adapted. The other companies haven't learn anything sorry to say.
and those who don't will die, darwinism
toyota adapted since 2011
@@user-zw4wh1tm9x Not really. Most of the dead were old people, well beyond the age of breeding.
@@user-zw4wh1tm9x Not really GM and Chryler was suppose to die on the last economic collapse. Then they cried for a bail out. If anything darwinism doesnt apply if you got bail outs.
Any hyperspecialized system breaks down when conditions change.
Homegirl talks like she just woke up. I love it
Oh no people have to keep their perfectly good "old" cars what're they gonna do😩
Learn what maintenance is I suppose.
So many Americans barely service their cars. So, they're all about to have a rude awakening.
@@TheFourthWinchester too many people think automotive maintenance means opening the fuel door. 🙄
@@TheFourthWinchester my father in law bought a car that the previous owner never change the oil in *five years*
I know tons of people the only literally thing they do to their cars is go to the pump for fuel that’s it!!! 🤣
Where's the stripped down base model that is actually cheaper and has better fuel mileage because it doesn't have options you don't need?
This is nothing more than a test of character for the automakers. We are going to see how they react when the chips are down.
Bring back 90's designs. Big windows, visibility is a gem, simple and easy to operate and standard transmission was fun to drive.
These cars still exist if you're willing to buy them on the used market
ok boomer
We’re not going back to old technology sorry but it sucks we have to deal with a little chip why can’t we adjust and adapt better or find a way around this unfortunate event
Ok boomer
Where's your graveyard grandpa?
Slap on a carb and standard transmission and you’re good.
Give me a manual transmission, roll up windows, manual mirrors,a simple stereo no screen, I'll buy it all day long
This is why 90s cars are classics now, computers to take care of what you want and nothing else
@Dima Q Even better.
That and they are all over 20 years old now...
@@willstikken5619 And still driving!
@Isaac Echeverri They can't, aside form the crash safety regulations new cars require things like tire pressure sensors and backup cameras to be installed.
Here's an idea: Don't make stupidly overcomplicated vehicles with nightmare electrical systems.
There are some cases where i understand the added complication, such as engine and transmission mgt systems which offer better performance and efficiency. Why every interior and exterior system needs to be linked by a databus and controlled by a central computer is beyond me.
why wouldn't you take advantage of latest technology lol? is it not a business' main priority to get good quality out while making their lives easier? also, this isn't something that happens every other year lol, so it's nobody's fault.
@@anishsattaram3793 - Just because a technology is new, doesn't means it's automatically better (there are plenty of automotive blunders throughout history that prove that). Any engineer will tell you that the _simpler_ a design can be, the better (assuming you're going for reliability and not planned obsolescence). Will Stikken is right that computerized drivetrain systems can squeak a little more performance and efficiency out of a vehicle, but that also comes at a cost of complexity that gives the system more failure points and makes it more fragile (in addition to increasing repair costs).
I've always thought you could have some insanely reliable cars if you combined modern precision machining processes with more simplistic designs, but I know that's something we'll never see.
@@NoName-ik2du that's what i meant lol newer better technologies that would help the business make car making easier, but yeah i do agree they should go for a healthy blend of accurate technology with tried and tested mechanics
The funny thing is that these manufacturers are taking out these features but aren't reducing the prices of their cars. That's pretty scummy that they would remove features and not drop the prices for those features they've removed.
They're paying more the chips and this wouldn't effect costs significantly
Also supply and demand
The supply is extremely low this why their price is high.
@@1ossksa Honestly this whole situation is seriously annoying. I think it goes basically like this,
During the pandemic, car manufacturers limited supplies because the market wasn't strong and people were out of work.
Now with good employment figures, the whole nation basically wants a new car.
Next, the chip shortage created by factories closing down due to the pandemic, caused car prices to skyrocket since manufacturers couldn't keep up with the increase of demand and had limited supply, making cars more expensive.
The pandemic further changed things and made people adopt new lifestyles that forced them to buy a car which further upset the supply of cars. Think city dwellers all moving out and needing a car in their new suburban or rural settings.
Add to that Hurricane Ida which flooded hundreds of thousands of cars in the Northeast and now if you were to combine all those instances, then the result is a massive supply issue.
Meanwhile, consumers are needing cars at an all-time high due to the aforementioned reasons, and since cars today rely so heavily on chips, manufacturers are forced to remove features and still keep prices high because of their limited supply but massive demand. So the end result is that a car today will have fewer features but still cost the same, if not more, than the original price.
It's truly a magical time to be a car buyer
wait, humans cannot get exactly what they want immediately ? !
Something to keep in mind in the future when you're looking at used cars. 2020 and 2021 cars weren't made as well...
2020 and beyond lol
Bought a used 2018 Corolla with 49k miles on it for $13k in March, what a steal compared to today’s prices
This is why old cars are better. No spying on you, and simple to fix.
The US needs to invest and expand public transport. In the future, there won’t be enough capacity on roads or parking spaces for cars as the population grows. Public transport is much more efficient, cheaper and better for the environment than driving alone in a vehicle.
There's a chicken-and-egg problem because mass transit is useless when you need to drive around suburban destinations anyhow. Efficient land use needs to be legalized so that mass transit is viable.
Public transportation sounds like a great way to transmit disease compared to having your own vehicle. Not to mention, maybe you like being crammed like sardines for an hour every day against strangers, but I'd rather not, thanks.
It's not efficient. For me to get to work via bus it would take three transfer points and 2 hours to get from home to work at 15 miles apart. Not to mention I can't carry a weeks worth of groceries for the family in a bus. In my fuel efficient car I get to work in 22 minutes and I carpool on Wednesday and Fridays so car owners have the ability to help do their part as well
@@chad_bro_chill Nobody said that Chad BroChill should be forced into a vehicle with strangers. Try re-reading the original comment.
@@JohnS-il1dr Learn what the word "efficient" means. It doesn't mean "fastest time for grandmaster Jim to take a particular trip in September 2021."
We did a township here in Pennsylvania and Mack truck has a few hundred trucks just sitting outside waiting for computer chips so they can be given to their customers…. Was kinda crazy to see that ….
Many things chips do in a car were mechanical but we made them to be reliant on chips.
One example is turn signals. They used to be simple coils that determined how frequently they blink. Now they’re controlled by computer chips.
The ability for Detroit to build trucks with carburetors and mechanical gages is still here. Just got to make the right phone calls. A popular hot rod trick these days is to swap a carbureted LS into an old car. My big fear is ordering cars and trucks instead of buying off the lot is here to stay.
Carbeurators suck though.
Oh really, just in time model doesn’t work? You mean all those graduates with business degrees could be wrong about the model they used to run a company?
When you take public transportation to help save the planet 🌎 you don’t have to concern yourself with the microchip shortage and your grandchildren will thank you for your conscientiousness 🌞
I don't have a car. However, f- public transportation. Everything's harder. You're way susceptible to theft or robbery. And you have to be pretty strong to carry all your groceries, especially if you can't carry them all.
What if you live in a rural area without public transportation? Not everyone has access to public transportation.
THEN YOU TAKE THE BUS.
@@wtfareperfectplaces IGNANT LIAR.
@@TheFalseShepphard no
During the pandemic car makers canceled chip orders
Source?
@@pedinhuh16 /watch?v=b1JlYZQG3lI
You’d think the big three gm Ford and dodge all go in to make a dedicated chip factory in the USA to get chips out ready and mostly automated
Thanks to build shy strategy, I believe this will help increase supply when chips become more abundant and we could potentially see big car deals especially during the holidays. Or I could be wrong.
People are too stupid to negotiate so I doubt it.
People are paying 15 to 35 percent over MSRP these days and the dealerships are rethinking the sales models. They will forego the days of filling their lots with hundreds of new cars and create artificial scarcity.
@@JohnS-il1dr like cash for clunkers all over again.
@@JohnS-il1dr this only ever was a thing in the United States.
Anywhere else in the world you order a new car at your dealer, which gets build to your ordered spec in the factory and then gets delivered a few weeks/months later.
The only way to buy a car of the dealers lot is getting a used car.
@@JohnS-il1dr You're wrong. After the chip shortage is over, dealership lot will be full of vehicles again. "Artificial scarcity" means reducing vehicle production which means production cost per vehicle goes way up, does not make sense.
Fun Fact: A Honda City has 700-800 semiconductor chips.
How many does a Honda Country have?
@@dev1lm4n63 what about a Honda Planet?
😂😂😂
@@martiananomaly what about Honda Solar System?
How about the Honda Galaxy?
You forgot to mention severe price gauging by dealers, like my local Toyota up making EVERY CAR 10K regardless of model or price claiming it was “fair market price” as a prior customer ( imagine 62K for a rave 4 trd pls tax) I laughed in his face and purchased a Gran Touring Mazda CX 5 fully loaded with every possible option like leather, radar, front and rear collision mitigation, all seats heated as the steering wheel Cooled seats…… for 35K. Luxurious and all soft touch unlike the all hard plastic rav 4 cheap interior and crapy tiny screens. Shop around don’t believe their lies
Cars require 28nm chips whereas foundries have been adjusted to latest 7nm/10nm/14nm required for today's wfh gadgets , not to mention car manufacturers deferred chip orders during outbreak and thereafter
So many things should have been learned here.
1: stop out sourcing
2: don’t be a bottom feeder on purchasing chips.
3: stock Pyle the chips.
Better, there used to be more strong and reliable cars, are those were all without chips... not even a single chip...
@linkzable The key would be to do chip Sharing and stockpiling agreement with all the manufacturers. Then no one is at a loss against their competition.
It’s obvious manufacturers want you to believe there is still a shortage. Because over night car prices will drop back to heavily discounted.
Idk, just build simpler cars again? Great idea right?
exactly
New vehicles are more safe, but older vehicles are more reliable
That's not quite true. Older vehicles, especially in America, are not known for their reliability. They are however generally more maintainable.
Newer vehicles tend to be safer, more efficient, more reliable and more comfortable. they also tend to be much more expensive and complicated to repair.
I prefer a big old car
@@willstikken5619 ehhhh as someone who gre up during the 50’s. American cars started going down hill in the mid 60’s. Before then? If you maintained it you had a solid car no matter what brand from the big three you got.
@Real Napster What if my Japanese car was built in Texas, does that count?
@@parkerhowell646 That's a common perspective relative to someones generation. Doesn't make it true. I grew up driving cars from the 60's and early 70's and there is a lot i love about them. There is a lot i don't like about modern cars. None of that negates newer cars being more reliable, efficient, comfortable and safer than the older cars we love.
Can we not recycle chips or at least what they’re made out of from junk yards or old computers.
i have the same question
Why have chips at all?
Idk
They cant be recycled.
Recycling chips isn't a good idea. Companies expel great efforts in MJ making chips. They are made in ultra pure environments and clean rooms, from ultra pure reagents and gases.
The only chip thats on my car is managing my engine on my 96 Beretta 😂
A very good chance to advance public transportation system.
My pickup truck has 0 semiconductors and only 6 fuses and is 61 years old so which vehicles technology is better one that can't run without 1000 electronic components or one that can be fixed with a few tools.
Elon Musk removed the lumbar support feature because people weren't using it. It was controlled by the master controller chip that controls nearly everything. That controller chip was not in short supply. Facts matter.
I don’t understand why firms don’t just consolidate all of their vehicle systems into one or two modules in their vehicles, this would therefore reduce the amount of raw material in the production process.
Because if everything is consolidated into few modules, a failure in a module becomes far more serious, up to and including bricking the vehicle. Multiple modules offer redundancy and stability.
The bright side is it’s a sellers market (from the standpoint of car owners). I went to get an oil change on my ‘19 Jeep Compass. They offers me way more than I owed. Then I picked up a very nice, used 2018 Grand Cherokee Limited.
They (automakers) deserve all the problems that face them in the society in which they created. It boils down to greed.
Wrong. They build dreams, not cars. Period.
Maybe we could get the government to look the other way and release some old school 1900s classics
So excited for my cheap stock car in 2 years
I just found out that the chips thst they use are so ancient that manufacturers are constantly telling car manufactures to update their tech and they didn’t so that’s a wake up call to them to adapt
If Auto manufacturers are dropping features because there aren't enough chips to go around, they'll be dropping their prices too right?
That's not how prices are set. They're set based on supply and demand.
What we're realizing is that efficiency and adaptability are diametrically opposing interests, and supply chains overextended in cost-cutting efficiency to gracefully handle this shock in transportation patterns.
Just invent something from ground up using just 1 chip for everything. Something like the apple m1
Well the problem becomes distance & wiring though there should be some streamlining
🤦♂️ no
You can't because if there were to be a problem in the system the whole system would be affected and you probably wouldn't be able to drive the car until it's fixed (research OBD can-bus system)
Modern day Marie Antoinette offering insights for car manufacturers
That bad . You need a back up chip or soon as it fails you die . Your whole vechile lose control
My heart is with the people in sales as well 😞 they have families to take care of and some of them have made car sales their careers
yeah its tough I'm a realtor and there's no inventory on homes shortage is almost everywhere.
I think i will just keep my golf 7.5 gte that has every single extras in it, because nobody knows when there will be another affordable car that i would be able to buy with all the extras ticked in.
A key point that was missed was the fact auto manufacturers thought they were not going sell cars so they cut all their chip purchases. Then chip manufacturers took that stock for other companies. Once the auto manufacturers tried to get their stock back it was too late.
How come so many other industries is also experiencing chip shortages? consoles, computers, smart phones.
Can you do a video about Uranium and the stock?
Hopefully manufacturers start to build cars that will last longer because of the supply shortage. If not then Toyota and Ford trucks will be only manufactures left in North America
Ford 😂
Ford seriously?? 😂
Are you crazy? Ford trucks used to be awesome but how many 20 year old Ford's do you see now?
Brands don't HAVE to cut content and features, they are doing so only to keep making money.
Hyundaj/Kia introduced many brand new models in 2020 & 2021 then most of those are getting more features for 2022. Many 1st year models were missing common features and customers were upset.
This is our fault. I remember as a teen a VW bug. No chip; no water cooling. It was PERFECT. We don't need chips in the car. The Bug got 28 mpg. Not bad and was SIMPLE to fix. We don't need no stinking chips.
I went to the dealership and manage to get a Toyota corolla 2021 out the door and man I was lucky cause they literally mentioned the chip shortages. As result there is very limited numbers of brand new cars.
Lets stop making it all screens
and stop removing physical buttons for.... touch sensitive ones....
Tech giants be pumping out devices and auto people think there's Chip shortage
Just another scam to normalise old electronics with high maintenance costs
I searched to find all the reasons that lead to the current Chip Supply problem and I found 6 reasons:
The first signs of a coming chip supply shortage came in December 2020. A very cold winter snap caused continuous blackouts at Texas chip factories operated by the biggest chip manufacturers: Infineon, NXP, and Samsung. Then, a fire in March at the Japanese supplier Renesas compounded the problem. Also, the COVID outbreak halted factories in Malaysia and Vietnam. In addition to all these problems, there was the high demand for video cards from gamers who stayed home during the pandemic playing video games, the increase number of people who also bought video cards to profit from mining and the increase number of people who had to have a better video card to work or study from home using video conferencing. So here are the 6 reasons I found.
First world problems 😂 lol oh no there’s the pandemic and everybody has to be inside, work from home or be laid off from work, what are we going to do? 😱 oh yeah buy overpriced video game consoles and computer video cards from scalpers 😂
You know what? With this chip shortage, we should go back to using old technology for cars. Manufacturers should make car that is mostly analog and mechanical, doesn't use electronics, and most and important of all a car that is affordable and practical enough for common people to own that exploits the chip shortage by those factors. Only exception is the car can either have an induction motor for an electric option, a traditional gas engine or a combination of both as a hybrid.
Why not make all your cars with manual mirrors, manual door latches, manual trunk latches, manual seats, a manually adjustable steering column, manual windows, manual transmission, etc. and add the complicated and expense electronic options. That way if such a shortage were to happen you can make all of your cars with the manual options until the shortage is resolved. Trust me, people won't care. In fact more people will be willing to buy your chip shortage cars for the manual options.
For example I won't buy any new car without all of the above.
I guess you'll never buy a new car again. There's like 6 vehicles that offer a manual transmission now. I got the last generation of Honda Accord with a manual trans.
The supply chain organizations of these companies I think can be rightly criticized for not being in-touch enough with their supplier base to see its instability with respect to semiconductors. It seems to me there was no thought given to planning for a breakdown of these suppliers’ ability to deliver. Had that been done, I think someone would have reacted differently to auto maker factory shutdowns due to Covid and continued to receive their semiconductor orders rather than canceling those orders outright, which to me was a very short-sighted decision as that capacity shifted straight to electronics makers and took auto makers’ orders out of the production queue. Have to imagine some supply chain folks lost their jobs over that.
That's why no one can buy a PS5 and Xbox and why GPUs are hard to come by.
Cutting out chip usage by compromising vehicle safety should be considered unacceptable
The title of this video could have been” when the chips are down “ for the automakers.
dont buy a car unless u absolutely have to. those of us that bought a car in 2018 and 2019 lucked out big time. :D
And those who work remote and are within walking distance of everything needed do even better.
@@remoterevolutions4791 well that’s no fun. Good luck taking any road trips.
Along with the chip shortages, automakers are struggling with parts shortages as a whole. Its going to be a long while until things are back to normal, in the mean time the used car market is absolutely sky rocketing with crazy dealer markups on new inventory
or we could just return to simple mechanical engineering you know
Eewww nooo! gross 🤢 too easy for our sophisticated taste
Using carbs and nothing electronic around the engine will make cars unsuitable for todays emissions standards.
or return to horse carriages
It’s messed up to mention Tesla like that. Bruh it’s only lumbar support for the passenger.
Just in Time, it a global issue effecting every industries who relied on JIT for so long e.g. fresh food in supermarket or critical medicine in hospital.
And because of this $500 junk box are going for $6k
Love the outline of a Bentley bentayga they're using lol
I don't understand why manufacturers are making their own chips and cut out the middle man. Incomplete brand new vehicles with lost features are not worth it...
If you used robot arms and machines to efficiently and reliably produce your chips at home instead of abroad, you'd be dominating the industry right now. Reshoring supply chains is the future.
Me: drives a 31 year old Lexus LS400.
"Turing on and off the factory". Nice job dude 😹😹😹😹you killed me when you compared organs to chips 🙄🙄🙄🙄
All these vehicles sitting, not even meeting up to date epa requirements by the time they’re actually sold
Ain’t no chip shortage now & prices are still ridiculous
$50 billion for research and development?
They already know how to make the things. How about 50 billion dollars for manufacturing?
Time to start digging for those 1950s car design footprints!!
What?
they won't.. Luxuries once tasted become needs - Glendon Camron 2020
@@anythingbutASIC "Luxury" is subjective. After riding the bus for a couple years, a 1988 Ford Escort with manual windows, AM radio and no AC would be considered a "luxury".
Lesson learnt that you need to have a backup if you want to be prepared and have your own production running as well not just everything outsource to somebody else far away overseas.
Now we have manufacture prepers love it
I'd think car makers would make more money if the car was made to order, instead of making mass amounts of vehicles that might never sell. Would save on microchips too
That’s the way they sell cars everywhere in the world but the US.
Only in the states you can buy a new car from the lot, everywhere else it’s custom order at the dealer, wait for the car to be manufactured, have it shipped to your dealer a few weeks/months later.
The only cars you can buy from the lot are used ones.
Imagine analog.
@Wall streetjournal F-off spamming troll!
If you want to go back to carbeurated engines, terrible automatic transmissions, no airbags, manual windows, and no seatbelt warnings, sure.
@@spacetoast7783 Lol ok soyboy
I was going to buy a new car this year but the dealer would only take $100.00 off the sticker price because of the chip shortage. Looks like I will wait a year or two!!!! I will NOT pay sticker price for any car. PERIOD!!!!! I wish it was the 70s again, NO chips in cars!!!!!
Are you forgetting that a chip factory burned down in Japan earlier this year?
The problem with being lean. Redundancy goes out the window. But relying on China for your critical components is silly and a novice move.
a bit misleading...chips manufacturers did not prioritize electronics. It was because car manufactures canceled their orders because they didn't think they would sell as many cars to reduce potential loss. When they realize sales did not decrease as they expected and went back to order more, it was too late. The chip manufacturers had already switched their machines to electronics so chips for automakers went behind the queue. It's an expensive and time-consuming process to switch gears from one type of chip to another. Now we have another problem which is hoarding. Similar to how Americans started hoarding toilet paper at the beginning of the pandemic, companies are prolonging the chip shortage by over-ordering chips in anticipation that they "might run out" leaving others such as the auto industry to wait longer until their turn comes. Of Course, they too will over-order in anticipation of "might run out" which will prolong the problem.
Just make cars from 98, 05 models, some of those are better made than the newer ones.
In other news, Apple announces that due to a chip shortage, it will now be possible to freely replace parts that previously required special Apple software to replace.
If only. Those crooks would never.
the used market prices has skyrocketed right now
@Wall streetjournal scam
Maybe one day in the distant future they will figure out a way to make a car run without a computer chip.