Chip shortage expected to cost auto industry $110 billion in revenue in 2021 HK Used cars going for a premium. I was insulted at what was presented! Time for some pay back as I suggested that the Co was selling junk and the public would remember this when things returned to normal. The used vehicles at the new dealership were pure junk, noisy valve trains, filthy interior, a hood that had been repainted for I suppose was an accident and presented with "NO WARRANTY" @ $29,000 with 28,000 miles. Go on by and have a laugh, take your camera! The salesman justified the poor quality offers because that was all they could get. Nope I will never darken their doors again. https://www.cnbc.com/2021/05/14/chi...o-cost-auto-industry-110-billion-in-2021.html Published F ri, May 14 202112:01 AM EDTUpdated Fri, May 14 20218:55 AM EDT Michael Wayland@MikeWayland Share Key Points The semiconductor chip shortage is expected to cost the global automotive industry $110 billion in revenue in 2021, according to consulting firm AlixPartners. The forecast is up by 81.5% from an initial forecast of $60.6 billion in late January. A number of factors have contributed to the increase, including a fire at a chip supplier plant near Tokyo and weather-related kinks in the automotive supply chain. In this article How the global computer chip shortage happened The ongoing semiconductor chip shortage is now expected to cost the global automotive industry $110 billion in revenue in 2021, according to consulting firm AlixPartners. The forecast is up by 81.5% from an initial forecast of $60.6 billion, which the New York-based firm released in late January when the parts problem started causing automakers to cut production at plants. Mark Wakefield, global co-leader of the automotive and industrial practice at AlixPartners, said a number of factors have contributed to the increase, including a fire at a plant near Tokyo for chip supplier Renesas and weather-related kinks in the automotive supply chain. “The pandemic-induced chip crisis has been exacerbated by events that are normally just bumps in the road for the auto industry, such as a fire in a key chip-making fabrication plant, severe weather in Texas and a drought in Taiwan,” Wakefield said in a press release. “But all these things are now major issues for the industry — which, in turn, has driven home the need to build supply-chain resiliency for the long term.” AlixPartners is forecasting that production of 3.9 million vehicles will be lost this year as a result of the shortage. That’s up from January’s forecast that estimated the shortage would cut production of 2.2 million vehicles. In the U.S., the shortage has caused the Biden administration to order a 100-day review of U.S. supply chains. About $50 billion of President Joe Biden’s $2 trillion infrastructure proposal is also earmarked for the American semiconductor industry. watch now VIDEO02:49 Chipmaker Kneron announces plans to acquire image signal processor firm Vatics Automakers such as Ford Motor and General Motors expect massive earnings cuts this year due to the chip shortage. Ford said the situation will lower its earnings by about $2.5 billion in 2021. GM expects the chip shortage will cut its earnings by $1.5 billion to $2 billion. Semiconductor chips are extremely important components of new vehicles for areas like infotainment systems and more basic parts such as power steering and brakes. Depending on the vehicle and its options, experts say a vehicle could have hundreds of semiconductors, if not more. Higher-priced vehicles with advanced safety and infotainment systems have far more than a base model, including different types of chips. “There are up to 1,400 chips in a typical vehicle today, and that number is only going to increases as the industry continues its march toward electric vehicles, ever-more connected vehicles and, eventually, autonomous vehicles,” Dan Hearsch, a managing director in AlixPartners’ automotive and industrial practice, said in a statement. “So, this really is a critical issue for the industry.” AlixPartners expects the largest impact to production in the second quarter and then progressively get better during the second half of the year and into 2022, Hearsch told CNBC. “By Q3, there’s enough to get everybody back up and running for the most part,” he said. “And then in Q4, we should get humming again and then next year get back to normal, hopefully.” That doesn’t mean supply constraints will be completely solved next year, but Hearsch said automakers should have enough semiconductors to produce as many vehicles as they want. The global automotive industry is an extremely complex system of retailers, automakers and suppliers. The last group includes larger suppliers such as Robert Bosch or Continental AG that source chips for their products from smaller, more-focused chip manufacturers such as Renesas or NXP Semiconductors. watch now VIDEO03:03 GM may lose about 20% of Q2 volume due to chip shortage: Analyst Much of the problem begins at the bottom of the supply chain involving wafers. The wafers are used with the small semiconductor to create a chip that’s then put into modules for things like steering, brakes and infotainment systems. The origin of the shortage dates to early last year when Covid caused rolling shutdowns of vehicle assembly plants. As the facilities closed, the wafer and chip suppliers diverted the parts to other sectors such as consumer electronics, which weren’t expected to be as hurt by stay-at-home orders. Hearsch said the top priority for companies right now is “mitigating the best they can the short-term effects of this disruption,” which may include everything from renegotiating contracts to managing the expectations of lenders and investors. Stellantis CEO Carlos Tavares said the automaker, which was formed in January through a merger between Fiat Chrysler and French automaker PSA Groupe, isn’t ruling out ways to be repaid by suppliers for the parts problem. “It’s too soon to say. We don’t know yet the total of the financial impact ... It’s going to be massive,” he said Wednesday during the during The Financial Times Future of the Car Digital Summit. “But it’s clear that it’s a competitive game ... we will not exclude that possibility.
Carburetors, points, plugs, distributor, ...surely they don't want to make us think an internal combustion engine has to have chips?
Chips are mostly to meet emissions requirements, to save manufacturing costs and finally to rape whoever needs to buy a replacement at vastly inflated parts. Try telling me with a straight face that any "smart" portion of a car couldn't be replaced by an Arduino or Raspberry Pi. New cars are freakingly ridiculous expensive. Wait until inflation makes the typical family rig start to push six figures. Most people finance for twice as long as they will own so pay an additional premium in price for that. The best part is that they lose 50% of their value within three years and a large portion of that the moment it leaves the dealer's parking lot. Not my game. I'm keeping my vehicles well maintained and will drive them until they rust out or I rust out first.
Shopping for suckers. Better yet, I was just looking at a New Sales Lot auto place, as my truck was across the street for Hail Damage repair. While there I was checking for a model they use to make. So I ask a salesman (some kid that looked about 12) if this was a V6, that being a car I was looking for, his reply was "Wait a minute while I look at the invoice." Simple I said lift the hood! Too late as he was gone as I was lifting the hood! Later as "THE Man, Sales Manager" was standing by to build up the Junker. I took the Salesman's card out of my pocket, looked at it and said to the Top Dog, "You know we used these to clean points on our cars after we filed them". The kid was back by then and gave me a deer in the headlight look! about his business card. Me looking to the top dog "He aint got a clue about cars. So I stayed around a bit and mentioned the burn holes in the drivers seat and the poorly patched seat. I guess the previous drive was smookin' something with a lot of seeds and must have had dirty butt to boot. Yep what a place America has become. Not a bad day after all. TOO EASY "Carburetors, points, plugs, distributor>
I now own a pair of Gen 3 Kia Souls. 1600cc engine, just like a Bug 4 doors, but about the same footprint as a Bug Bucket seats upfront, bench seat in the rear, just like a Bug Uses a Computer controlled Direct Injection 4 banger, Not like the Bug, and gets about 30 MPG around town, where my last Bug only got 25 MPG around town...... The Bug barely had electricity and no chips - but today would never pass the smog test - except Anchorage finally dropped that scam The Kia does have a real heater, unlike the Bug and at -20F, that's a big deal. The weekend of the 20th, the local VW air-cooled club is having their annual 'show' Be interesting to chat with the owners... And ya, would love to buy me a new 1971 Kombi....
Speaking toward G.M. specifically, we had to bail them out at least once before, so we could have the "Privilege" of being able to purchase super over priced pickups, Corvette's, and over blown Cadillacs, all three options well beyond what many folks could afford, while the company cut the brands Pontiac and Oldsmobile and Saturn from the lineup, effectively shutting out buyers of affordable automobiles. Look at the price of a base model full size Chevrolet pickup, yea, I don't think so! I'm sick and tired of the strangle hold of the auto industry basically tumbling it's nose at the regular working stiffs and refusing to make and offer affordable products! G.M. Chrysler, and Ford can all die on the vine they will get nothing from me!
The affordable cars today are coming from S Korea. Used car prices have gotten insane. A 3 Y/O Soul goes for 18K, new, 22k. Ah, for the days of a new VW Bug in 1967 @ $1758.40 on the showroom floor (http://1967beetle.com/67-beetle-price-list/) add in inflation... $14,056.32 in today's dollarettes.
I got a '74 VW Super Beetle, '78 MGB, and '83 Chevy 1500 pick-up, which I plan to keep running for as long as there are parts and mechanics. I also have a 1978 Pontiac Firebird that isn't running that I need to get back on the road. These are vehicles that you can actually work on yourself. The only weak link would be a lack of parts, belts, hoses, tires, filters, and fluids. I would like to stockpile some of these, along with engine rebuild kits, and keep them running for many years to come. EV be damned!
Have a 1986 GMC with a nice small block with aHolley carb and Mallory dual point distributor. With the high compression ratio, I run E85 and have a column distillation unit to make my own 190-195 proof alcohol. The kit to convert a Holley to run on alcohol runs about the same as their carbs.
Yeah, high proof shine will be the fuel of the future. The carbs on my vehicles are much easier to modify for alcohol.
