Hope I get this F150 by Christmas for our annual road trip
Frying Pan Into the Fire -- Chip Shortage
- Thread starter Weather Man
- Start date
Stellantis extends European production shutdowns as chip woes continue
- Stellantis N.V. (STLA -1.2%) will extend shutdowns at several auto manufacturing plants in Europe due to the continuing global microchip shortage, reports Reuters today.
- On Friday, the company announced that production would be suspended next week at the company's Sevel plant in Italy, which is Europe's largest van manufacturing plant with a daily production of ~1,200 vans.
- A Stellantis worker's union in Italy was warned that the chip shortages will also impact other plants operated by the Stellantis group.
- The chip shortage does not appear to be ending soon, as Stellantis CEO Carlos Tavares thinks the shortages could continue into next year and Intel warned that the chip shortage would get worse in the back half of the year and supplies won't normalize for another year or two.
More than likey.
That's about 4 months from now, but you've already been waiting for about 2 - 3 weeks, correct? I hope you get it for the trip.
Can't wait to see photos of this machine.
Yeah it's been about 2 years....I mean 2 weeks I think.(lol) They are starting just now to get to the Dealerships and Customers. These are they guys who jumped asap which I did not. It'll be worth the wait. I just bought a new split unit AC for the garage so I have to install that and do some cleaning and rearranging. Plan to park the truck indoors when home. I hear about them getting stolen a good bit plus my system will be around 8K when done. Why take chances when I only have one vehicle now.
Not good.
Auto sector roundup: Prices soar amid supply chain turmoil
Auto sector roundup: Prices soar amid supply chain turmoil
- U.S auto sales are forecast to fall about 9% in August due largely to a tight supply market amid the ongoing chip shortage and supply chain slowdowns.
- Naturally, lower supply means higher prices in the market. Checks by JPMorgan indicate average transaction prices in the U.S. will set a new monthly record of over $41K in August, driven by continued beneficial mix and by an expected -55% Y/Y plunge in industry-wide incentive spending amidst the shortages. That pricing tailwind should be kept in mind for automakers like General Motors (NYSE:GM), Ford (NYSE:F), Stellantis (NYSE:STLA), Honda (NYSE:HMC), Toyota (NYSE:TM) and even Tesla (NASDAQ:TSLA) if the volume numbers look disappointing.
- JPMorgan expects new vehicle prices could rise as much as +16% Y/Y in August to accelerate from the +13% pace in July. The impact of Hurricane Ida on petrochemical availability and pricing is also in the mix. The hurricane may have also damaged a large enough number of cars in New Orleans and other larger cities to move the meter. The upward pressure on new and used vehicle prices and rental car prices as demand for replacement cars grows is seen potentially benefiting LKQ Corporation (NASDAQ:LKQ) and Avis Budget (NASDAQ:CAR), while surge costs can in some cases offset the obvious benefit to revenue for a company like Copart (NASDAQ:CPRT).
It's everything. I'm in packaging so I have direct contact with just about every industry out there. Labor shortages are across the board. Nobody wants to work and those that do demand sky high pay and aren't willing to put on the work to justify it. It's literally every business owner I talk to from mom and pops to fortune 500's. Demand is high but production has come to a screeching halt because there is no labor.
I fired my last machine operator today because he refused to work. Now I'm out running the machines. The next step is closing the doors which is crazy considering that we have a record amount of business.
We have a worldwide wide labor strike fueled by mainstreamed progressivism and it's getting ready to bring down the entire worldwide economy. It took a decade but occupy wall street finally went mainstream.
My wife and I tried to eat at a Perkins in Rapid City, SD this past Sunday. They were open Fri/Sat/Sun only due to labor shortage. We walked in during hours they were supposedly open. Manager met us and said sorry, we just closed, his wait staff decided it wasn't busy enough and walked out. Never seen anything like that.
How long can the owner afford to operate like that???????
My comments are definitely a topic for another thread, but prepare yourselves Patriots. We may be on the verge of an economic collapse that will make the Great Depression look like a walk in the park.
That's crazy but I believe it. I'm seeing that mindset everywhere.
We're seeing the absolute worst in humanity right now and it's being treated by the media, education system, and all of our institutions as proper behavior.
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These are some pretty long plant closures.
Renault to extend Spanish production halt due to ongoing chip shortage
Renault to extend Spanish production halt due to ongoing chip shortage
- Renault (OTC:RNSDF) will continue the production halt at its three assembly plants in Spain due to the global shortage of semiconductor microchips, a spokeswoman for Renault Spain tells Reuters.
- French carmaker plans to extend partial stoppages to the end of this year, which will see its plant in Palencia, where it assembles its Kadjar and Megane models, on halt for as many as 61 days. Its Valladolid factory, where it makes Capture SUV crossovers, will slash production for up to 40 days.
- As the shortage continues, Renault had already approved a plan to idle the factories in Spain for up to about 30 days each between April and July and decided to set up a new plan for the last four months, report.
- Last week, Ford (NYSE:F) announced production cut for its F-150 pickup truck due to ongoing chip shortage. Other car companies like Toyota (NYSE:TM) also have had to lower production forecasts as the shortage continues.
The suppliers of the other components must be pissed. Imagine the revenue being lost across the board when companies aren't able to produce and sell high dollar sub assemblies, due to other suppliers' failures.
Yup. It's being pushed to collapse.
Businesses and such will begin to close. Consumers will stop consuming. Prices of everything will soar since demand will drop. Then even more close due to not being able to make ends meet.
This way the govt can institute bread lines and rations under the pretense that capitalism failed.
Capitalism didn't fail, they forced it under.
A lot of fast food joints around here don't have indoor dining. Not enough help.
Thing is, I can't really blame someone for not wanting to work at a fast food joint. That shit sucks and regular retail sucks. All you do is get yelled at while making peanuts and smelling like ass.
Arguable. The entire scenario is multifaceted. Anyone that thinks this has little experience in the way of supply chain or manufacturing in China and selling in the US.
Supply chain issues are everywhere, from the manufacturer, to the supplier, retailers to the consumer. Rising costs, especially in Ocean Freight, is ****ing things up the most. Also the major backlog of freight at the port is where the biggest issue lies. The goods are being produced for consumers. It's in containers. They just can't unload fast enough.
Arbitrary numbers, but applicable to the conversation as an example:
12 months ago I was filling up 40 foot containers and bringing them to the East Coast for 2500. Today, I'm paying 13k per container.
If the total COG (cost of goods) are 100k/container, and each container has 50k pieces, I push that increased cost down onto the good. So lets call it an average cost of 2.05 per piece pre-covid shipped
At the new shipping rates, excluding tariffs, my new shipped cost is 2.26 by the time it's to me.
That gets passed to my customers, who sell to you all at another 5%... maybe. So you would see another 5 bucks on every 100 dollars, if that.
Pricing is going up on everything, but a lot of it is artificial and really just the US supplier taking advantage of the "Supply Issues" mantra. The ones increasing prices 10-40% will back things way off when people stop buying. They've got room for it.
If it weren't so easy to get on unemployment fast food wouldn't look half bad.
Ford Motor U.S. retail sales fell 39.6% in August, EV sales gain 67.3%
- Ford Motor (F -0.5%) reports U.S. sales down 33.1% Y/Y to 124,176 vehicles in August.
- Truck sales fell 29.4% Y/Y to 73,610 units, Car sales squeezed 86% Y/Y to 2,369 units, and SUVs -25.3% Y/Y to 48,197 units.
- Total retail sales -39.6%: Truck -35.7%, Cars -84.6% and SUV -30.4%.
- Ford’s production output expanded 79.8% relative to July, while inventory was up 34.4%.
- Ford’s electrified vehicle sales were up 67.3% on sales of 8,756 vehicles.
- F-150 Lightning reservations exceeded 130,000 mark.
- "Retail sales increased 6.5 percent in August relative to July, as production and dealer inventories showed monthly gains. Nearly a third of our retail sales came from presold orders last month, while adding an additional 41,000 new orders for the month. With improved availability, F-Series retail sales expanded 11 percent relative to July giving Ford its best F-Series sales month since the chip shortage began, and F-150 Lightning has now surpassed 130,000 reservations", says Andrew Frick, vice president, Ford Sales U.S. and Canada.
- Last week, the company announced that it would be extending downtime for F-150 pickup, and scaling back production of some of its largest, most-profitable models because of the ongoing semiconductor shortage.
GM cuts September production at eight North American plants due to chip shortage
- General Motors (GM +0.5%) will lower production at most of its North American plants this month due to the continued shortage of semiconductor chips.
- The U.S. automaker will stop production of its profitable pickup trucks at its Fort Wayne, IN plant and Silao, Mexico plant in September, along with six other assembly plants involved in SUV and Cadillac manufacturing.
- GM said it will repair and ship unfinished vehicles during the downtime at the plants.
- Toyota (TM -0.1%) is trimming planned global production by 40% and Ford (F +0.5%) also announced production cuts to its F-150 production truck last week.
- Today, Ford reported that retail sales fell nearly 40% in August while EV sales were up 67%.
Qualcomm CEO: Company willing to work with European chip foundries--report
- Qualcomm (QCOM -1.1%) Chief Executive Cristiano Amon said his company is willing to consider working with European-based chip foundries, under the right circumstances.
- According to a report from Reuters, Amon said European countries would need to implement incentive programs that attract the right partners and are aimed at improving the production of semiconductor for automobiles in order to for Qualcomm (NASDAQ:QCOM) to expand its business with the continent's chip foundries. Amon spoke about the chip-foundry issue at the IAA car show being held in Munich this week.
- Amon told Reuters, "There is a very constructive dialogue taking place, by the French government, the European governments, I think they have an interest in attracting foundries in Europe."
- The European Union is seeking to get its members to put more money into chip production as part of an effort to reduce dependence upon foundries in China and elsewhere in Asia. The entire chip industry has been caught in an ongoing product shortage this year that has led to reductions in supplies and higher prices across the tech sector. The majority of Qualcomm's manufacturing is handled by foundries in Asia where its products are made for many of the world's leading cellphone companies, and the chipmaker is taking steps into the automotive market with chips that are used in car dashboards and entertainment systems.
- On Tuesday, a Reuters report said Qualcomm had reached a deal to provide digital dashboard chips for a new electric vehicle from French automaker Renault. Last month, Qualcomm appeared to be in the driver's seat to acquire Swedish auto parts maker Veoneer (NYSE:VNE) in a deal worth approximately $4.6 billion.
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