Frying Pan Into the Fire -- Chip Shortage

[Lambeau]

Somehow, the chip and supply line issues aren't affecting this Chinese company, interesting.

Tata Motors total sales rises 101% Y/Y in 1Q23​

TTM -1.67%Jul. 01, 2022 6:46 AM ET

• Tata Motors (NYSE:TTM) reported domestic sales growth of 82% Y/Y to 79,706 units in June and 225,828 units in 1Q23, an increase of 110% Y/Y.
• Registered total sales domestic and international grew by 101% Y/Y to 231,248 units in 1Q23.
• Commercial vehicles rose 69% Y/Y to 37,265 units for the month and 100,921 units in 1Q23, growth of 101% Y/Y.
• Passenger vehicles up 87% Y/Y to 45,197 units in June and 130,125 units (102% Y/Y) in 1Q23.

And chyna gives zero ****s about climate change, and 95% of American politicians are owned by them, so...

"President Xi Jinping last month said China's low-carbon goals should not come at the expense of energy and food security or the "normal life" of ordinary people."

China starts building 33 GW of coal power in 2021, most since 2016 -research

China started building 33 gigawatts of new coal-fired power generation capacity last year, the most since 2016, research published on Thursday showed, a sign the country is falling back on fossil fuels as economic worries mount.

www.reuters.com

EDIT: India is the same way

 

[1 Alibi 2]

General Motors sold a total of 582,401 vehicles during the second quarter, down 15% year over year, as the automaker was slammed by supply chain disruptions, including delayed semiconductor shipments. All of which will hurt profits during the quarter.

The automaker revealed in a Securities and Exchange Commission filing that approximately 95,000 vehicles in its inventory were manufactured without certain components, the majority of which were built in June.

Adding that "substantially all of these vehicles will be completed and sold to dealers before the end of 2022," with deliveries expected to occur through the second half of 2022.

"We appreciate the patience and loyalty of our dealers and customers as we strive to meet significant pent-up demand for our products," GM North America president Steve Carlisle said in a statement. "We will work with our suppliers and manufacturing and logistics teams to deliver all the units held at our plants as quickly as possible."
.

 

[Weather Man]

Over 100 million Chinamen in lock down in and around Shanghai, don't be looking for any supply chain relief. I wonder what the rate of companies saying, enough, we're out?

 

[Weather Man]

I have noticed this trend of EV makers constantly increasing production. EV's take twice as many chips as ICE. Somehow all the EV makers that also make ICE can also find chips for EV, but not ICE. I don't know what combination of invisible hands is responsible, but I am becoming increasingly pessimistic about ICE ever meeting normal demand until it becomes irrelevant in relation to ban dates, that are moving ever closer to the date we actually occupy. Maybe a deep recession would change that, but I wouldn't bet on it. This multi-year under production of new is going to haunt used car values for a LOOOONG time. Diesel trucks especially are going to stay stupid high.

• Polestar (NASDAQ:PSNY) has delivered approximately 21,200 cars in 1H22, more than doubling deliveries from 9,510 cars in the same period in 2021 – an increase of almost 125%.

 

[DSG2003Mach1]

I have noticed this trend of EV makers constantly increasing production. EV's take twice as many chips as ICE. Somehow all the EV makers that also make ICE can also find chips for EV, but not ICE. I don't know what combination of invisible hands is responsible, but I am becoming increasingly pessimistic about ICE ever meeting normal demand until it becomes irrelevant in relation to ban dates, that are moving ever closer to the date we actually occupy. Maybe a deep recession would change that, but I wouldn't bet on it. This multi-year under production of new is going to haunt used car values for a LOOOONG time. Diesel trucks especially are going to stay stupid high.

• Polestar (NASDAQ:PSNY) has delivered approximately 21,200 cars in 1H22, more than doubling deliveries from 9,510 cars in the same period in 2021 – an increase of almost 125%.

not all chips are created equal. I would imagine that EVs are using, more powerful chips which seem to be coming into abundant supply looking at cancellations from some of the graphics card producers because they're now overstocked. Most ICE vehicles are using older, less powerful chips and production isn't exactly interchangeable.

Hell, when the chip shortage started Tesla moved to a more readily available chip and changed their firmware to support it. Ford, GM etc... would take years to do such a thing.

 

[SecondhandSnake]

I have noticed this trend of EV makers constantly increasing production. EV's take twice as many chips as ICE. Somehow all the EV makers that also make ICE can also find chips for EV, but not ICE. I don't know what combination of invisible hands is responsible, but I am becoming increasingly pessimistic about ICE ever meeting normal demand until it becomes irrelevant in relation to ban dates, that are moving ever closer to the date we actually occupy. Maybe a deep recession would change that, but I wouldn't bet on it. This multi-year under production of new is going to haunt used car values for a LOOOONG time. Diesel trucks especially are going to stay stupid high.

• Polestar (NASDAQ:PSNY) has delivered approximately 21,200 cars in 1H22, more than doubling deliveries from 9,510 cars in the same period in 2021 – an increase of almost 125%.

It's not surprising. They're just prioritizing where they go. Where would you put your chips- in the cars you can sell now, or the ones in a new emerging market where you're trying to get a foothold, that is just about guaranteed by the government to be the dominant market in a few years? That's why Ford has been pushing the Mach E so hard- they want people to get a taste so they stay with Ford's EV line in the future. The same can't be said for an ICE buyer.

As far as the pain- you are right on the money. 2008 hurt for a long time due to both lower sales and cash for clunkers. This is going to be 10x worse.

not all chips are created equal. I would imagine that EVs are using, more powerful chips which seem to be coming into abundant supply looking at cancellations from some of the graphics card producers because they're now overstocked. Most ICE vehicles are using older, less powerful chips and production isn't exactly interchangeable.

Hell, when the chip shortage started Tesla moved to a more readily available chip and changed their firmware to support it. Ford, GM etc... would take years to do such a thing.

There has already been a lot done to retrofit vehicles to older chips across the OEMs. It's a very expensive, high priority project, but it pays dividends. If they didn't, there would be a lot that would be totally SOL- not just vehicles being built without heated seats or the like. But even those are still pretty limited in the recent past, and for the future.

 

[Weather Man]

Volkswagen looks to secure chip supply through new development deal with STMicroelectronics​

VLKAF -0.39%Jul. 20, 2022 9:12 AM ET
Volkswagen (OTCPK:VLKAF) and chipmaker STMicroelectronics N.V. (STM) plan on developing a new semiconductor chip for software-defined vehicles.
Volkswagen software unit Cariad and STMicroelectronics (STM) will co-design the new chip amid a global shortage that has cut into auto production plans. The new chip will be part of the Stellar microcontroller family of semiconductors and will be manufactured by Taiwan Semiconductor Manufacturing Company (TSM).
The planned cooperation targets the new generation of Volkswagen (OTCPK:VLKAF) vehicles that will be based on the unified and scalable software platform.
Volkswagen statement: "We are about to launch a groundbreaking new cooperation model for the Volkswagen Group. With the planned direct cooperation with ST and TSMC, we are actively shaping our entire semiconductor supply chain. We’re ensuring the production of the exact chips we need for our cars and securing the supply of critical microchips for years to come."

 

[SolarYellow]

Over 100 million Chinamen in lock down in and around Shanghai, don't be looking for any supply chain relief. I wonder what the rate of companies saying, enough, we're out?

For companies to leave that dump hole, I think much more pain would need to be inflicted. Not saying companies won't leave but I think you give the CEO's and shot callers way too much credit. IMO the ones who might actually give somewhat of a damn, are manufacturing outside of that trash heap.

 

[Weather Man]

For companies to leave that dump hole, I think much more pain would need to be inflicted. Not saying companies won't leave but I think you give the CEO's and shot callers way too much credit. IMO the ones who might actually give somewhat of a damn, are manufacturing outside of that trash heap.

China is turning up the xenophobic heat to maximum, the smart companies will get their product out, the really smart ones will bring it home. Transportation costs are going to be a huge player going forward, I think.

 

[SolarYellow]

China is turning up the xenophobic heat to maximum, the smart companies will get their product out, the really smart ones will bring it home. Transportation costs are going to be a huge player going forward, I think.

Just my opinion but I won't hold my breath until people decide the foreign chinese good isn't worth the money and that's when the companies will take notice. Who woulda thought transporting crap thousands of miles across bodies of water would be costly and continue to rise?

 

[Weather Man]

Just my opinion but I won't hold my breath until people decide the foreign chinese good isn't worth the money and that's when the companies will take notice. Who woulda thought transporting crap thousands of miles across bodies of water would be costly and continue to rise?

You catching bits here and there about companies dropping Chinese made goods. The main reason quoted is that their quality control went to shit.

 

[GOTSVT?]

You catching bits here and there about companies dropping Chinese made goods. The main reason quoted is that their quality control went to shit.

Chinese and quality control in the same sentence? Sheeeeeesh

 

[Weather Man]

Chinese and quality control in the same sentence? Sheeeeeesh

Plenty of Chinese companies were making stuff acceptable enough, but something has changed that equation for quite a few Chinese suppliers.

 

[Weather Man]

Samsung considering building 11 chip factories in Texas, could be worth $200B: report​

Jul. 21, 2022 9:23 AM ET6 Comments
Samsung (OTCPK:SSNLF) is considering building 11 chip factories in Texas over the next two decades, which could be worth nearly $200B and create more than 10,000 jobs, Austin-American Statesman reported, citing state documents.
South Korea-based Samsung (OTCPK:SSNLF) recently announced plans to build a $17B semiconductor factory in Taylor, Texas, but the 11 potential new plants could be spread out over the Lone Star State. Two would be in Austin and the remaining nine would be in Taylor.
Of the 10,000 jobs, roughly 1,800 would be in Austin and the other 8,200 would be in Taylor.
The news outlet noted that most of the new fabs would be running by 2034, but two could take as long as 2042 to get up to production, citing the documents.

 

[DriftwoodSVT]

No. Traffic and housing in Austin is already a mess. We don't need more.

 

[Weather Man]

No. Traffic and housing in Austin is already a mess. We don't need more.

It's amazing how the leftist states are literally driving business out.

 

[Weather Man]

Honda cuts production at two key plants in Japan due to supply issues​

HMC +1.22%Jul. 22, 2022 7:44 AM ET1 Comment
Honda Motor Co. (NYSE:HMC) said it would cut planned production in Japan by up to 30% in Japan due to persistent supply chain and logistical issues.
The Japanese automaker plans to reduce production at two lines at its Suzuka plant in western Japan by about 30% in early August versus previous plans. The assembly plant in Saitama prefecture will also cut back production by about 10% early next month.
Amid lingering COVID and supply chain issues, Honda adjusted its production plan back in May when it also forecast a return to normal in early June. Honda also warned that supply chain and inflation problems would lead to operating profit falling 7% during the fiscal year even with pricing and sales higher.

 

[Weather Man]

GM stock slips after supply chain problems hit quarterly profits​

GM -0.43%Now!
General Motors (NYSE:GM) shares skidded in premarket trading on Tuesday after the automaker advised its production is still hampered by chip and parts shortages.

For the second quarter, the company missed analyst expectations on EPS by $0.18, notching a deceleration to $1.14 from $2.09 in the first quarter and $1.97 in the year prior. While $35.76B in revenue for the quarter beat estimates by $1.41B, CEO Mary Barra noted that demand was not fully capitalized upon due to scores of autos held up in production due to missing parts. She noted these impacts were particularly outsized in June.

Moving forward, Barra indicated the automaker is taking proactive steps to manage costs and bolster its bottom line into an expected economic slowdown.

“There are concerns about economic conditions, to be sure,” she said. “That’s why we are already taking proactive steps to manage costs and cash flows, including reducing discretionary spending and limiting hiring to critical needs and positions that support growth. We have also modeled many downturn scenarios and we are prepared to take deliberate action when and if necessary.”

 

[Weather Man]

EV's take twice as many chips, we know what Fords priority is. Chevy pickup plant in Mexico idles until early Sep.


The Drive

Growing Pile of Unfinished Ford Trucks Is Visible From Space Again​

Caleb Jacobs - Yesterday 2:40 PM

We saw the stockpile of chipless Ford Super Duty pickups grow immensely in 2021. At one point, there were so many of them at Kentucky Speedway that they could even be seen from space. As it turns out, that's once again the case in August of 2022. Ford eventually worked through the last batch and sent them on their way, though locals report that the same lots are filling back up. Satellite images dating from Aug. 16 to now support that claim.

Growing Pile of Unfinished Ford Trucks Is Visible From Space Again© Planet.org

These photos from the past week show dozens upon dozens of Fords being held at the speedway, about an hour away from the plant where the Super Duty is built. At present, there's still empty space in and around Kentucky Speedway's auxiliary lots, which certainly wasn't the case in May of last year. The situation may not be as dire now as it was then, which is a good thing, but there's still a large number of trucks in limbo.

I reached out to Ford to learn why these trucks are being stored in the first place, and a company spokesperson confirmed that they're waiting on chips, just like last year.

 

[DSG2003Mach1]

EV's take twice as many chips, we know what Fords priority is. Chevy pickup plant in Mexico idles until early Sep.


The Drive

Growing Pile of Unfinished Ford Trucks Is Visible From Space Again​

Caleb Jacobs - Yesterday 2:40 PM
View attachment 1759325
We saw the stockpile of chipless Ford Super Duty pickups grow immensely in 2021. At one point, there were so many of them at Kentucky Speedway that they could even be seen from space. As it turns out, that's once again the case in August of 2022. Ford eventually worked through the last batch and sent them on their way, though locals report that the same lots are filling back up. Satellite images dating from Aug. 16 to now support that claim.

Growing Pile of Unfinished Ford Trucks Is Visible From Space Again© Planet.org

These photos from the past week show dozens upon dozens of Fords being held at the speedway, about an hour away from the plant where the Super Duty is built. At present, there's still empty space in and around Kentucky Speedway's auxiliary lots, which certainly wasn't the case in May of last year. The situation may not be as dire now as it was then, which is a good thing, but there's still a large number of trucks in limbo.

I reached out to Ford to learn why these trucks are being stored in the first place, and a company spokesperson confirmed that they're waiting on chips, just like last year.

doesnt really mean much without confirming the chips used in EVs are the same that could be used in components to finish those trucks