@@LoneStarStinger totally natural don’t stress it. People are going to notice, but most people that voice their opinion say positive things. Plus what matters is the CLARITY of vision achieved when you employ the right pair of glasses. They will quickly become essential and worth the time and effort to learn how to maintain them for optimal performance+life. Biggest downside is feeling borderline disabled when they have just broken or been lost or just not on your face. Which brings me to the second rule of glassesing is always keep a spare set!
@@LoneStarStinger I have been a glasses wearer most of my life and have a few bonus points that might help: Windshield! you can ride a bike or stand in the wind and while other people squint you chuckle. People think you are smarter than you are. Nobody will hit you in the face. Welcome to glasses land!
I work on a VW plant and this video explains roughly what's happening on the Auto industry, it's extraordinary how just a few parts can make car industry collapse nearly collapsed. keep up the good work
We are short hundreds of thousands of parts (chips). It would be impractical and impossible to keep that much inventory of all your parts. JIT is not to blame for this
JIT isn’t the issue, it’s been an unusual couple of years, and the decision makers that decide what those levels will be made a mistake in guessing what was gonna happen with car sales because of the pandemic.
I work for GM Canada. We havn’t been working most of the year because of his semi conductor shortage. Went from 6 days a week building the Equinox to laid off for months!
That really suck, but let's me say this, atleast you still have free health insurance unlike the US, and don't you also have free cellphone service as well or is that made up. Hope you get back to work soon to support yourself better then you probably are right now
@@ODST_Republic Nothing is free, We pay insane taxes to have free health care. We are also only one of the first world countries to get double dipped on cell phone plans with some of the highest rates on the globe.
@@kingofshibby really, thats crazy, I mean I knew about taxes for health care, but I didnt know it was insane, also I wasn't too sure about the phones and you're saying it's very high, thats crazy as well
@@ODST_Republic I mean regulating a capitalist economy is a better deal for the people than spending more money to keep the cogs of the government running to give out free services. You need to set up at least 2 bodies, one to give out the services and one to see if any fraud or abuse of power is happening with the body of government.
I just bought 1 2002 Windstar for 500 bux. I'm happy and the AC will run you out. It's the vehicle we are driving for our Pinehurst golf trip very soon. Something to think about. If a brand new 2020 or 2021 vehicle is sold in 2022 or later, is it still new? I'm way off base.
@@MrShanghai34 technically if it hasn't been sold to anyone it still kind of considered new, like when you buy a 2015 new phone, never been used and still new, but its not top of the line anymore. What you're basically saying is that they won't be top of the line anymore
I’m about to sell my loaded 2015 WRX to fund my 65 beetle build. Not because I don’t love it, because I’ll get 10k over what it’s worth in this market. 😂 I could make a profit off my beetle too but I live too far from work to walk. 😜
@@aceonwheels2349 right?? Same with my 2017 Miata, I could easily sell for $10k+ over. Been seriously thinking about it, barely driven since pandemic and been working from home
Wish they can make them simpler with less chips. We survived. Put a column shifter, no need for buttons and etc. save resources for stuff you need them for like air bags!
@@IntelTV Yeah I can see that being true. It is. I feel the public is being told what to like in some cases though. Ever get something changed on you that you never really minded or needed and just followed along?
The age old story of people buying shit they don't need, just because everyone else is doing it. Everyone deserves to ride their teched-out tank around, don't they? Just don't think about where the cobalt comes from.
I work in automotive supply chain and it has been an absolute nightmare for almost 2 years because of this. The OEM I work for uses JIT production. Space is at a premium so we can't keep many, if any, extra parts on the shop floor. Very well explained in the video. Great video.
Nolan only barely touched upon Toyota's modifications to their own JIT methodology. Several years ago Toyota realized that there are SOME parts that MUST be exempt from JIT because an interruption in their supply would mean delays in the span of weeks or months. Chips was one such item. So Toyota invested in a stockpile that will allow them to continue manufacturing cars (albeit at a lower rate). Other car makers did not make this change (because why waste money, right?) and thus learned this lesson the very hard way.
Yeah I'm seeing the same thing where I work. Parts go on cars within hours of leaving the truck and purchasing is struggling to keep up. However looking back on history, every 5-7 years there seems to be a supply chain interruption. The question is: Is it worth it to stockpile parts when models change every few years and events like covid or natural disasters can't be predicted or forecasted?
I love how I went from not knowing and caring much about cars up until last January when I randomly found the Donut Media channel to now being a straight up car girl and even decided to go back to school to become a mechanic. Thanks for all the super educational and amusing content Donut, keep doing what you’re doing!!
It's a good time to take stock of how disposable we treat things. Throwing away perfectly good working stuff cause it doesn't have the newest wifi smart assistant butt is wasteful. Though with JIT production whatever our consumption rate is it would have been brought to a screeching halt by a disruption anywhere in the supply line.
I grew up poor, so for me when I buy something I’ve learned to take care of my things and learned to mend and fix stuff. I’m not poor anymore but I still try to keep that mentality.
I know around Louisville there's parking lots FULL of new Fords and Lincolns. Like every large mostly vacant parking lot is packed with them. Drive them out hooked up to a laptop and let them sit all because of one tiny little piece
There probably a good 5-10 mini computers living in all those cars. But it is a little ridiculous, but I guess they’re trying their best with what they’re delt
@@chriscarguy No, they're doing their best with the decisions they've made.... The "chip shortage" is artificial. It's entirely the fault of the auto makers. The CEO of Intel publicly offered to make every chip the auto industry needs, under the condition that they transition to a process node developed in the last decade. The auto makers, so far, are refusing. It would only take Intel a few months to cover the entire backlog of chips the industry needs. The problem is, Intel would actually lose money by ramping production on 90nm+ micro-chips for the auto industry. To be worthwhile, the chips need to be produced on 45nm or newer process technology as that's what Intel currently has available to them. They would have to invest billions retooling plants to manufacture 90nm+ chips again. The tech industry moved on from 90nm more than a decade ago. The chip fabs aren't going to prioritize products that they only make a few cents on, over products that they make several dollars on.
This was great! One thing that wasn't covered that answers the question of "Well, why can't Ford just pay the manufacturers to make more chips for them?" has an interesting reason behind it. Basically - chip manufacturers allocate blocks of time/materials to companies months and often years in advance to make their specific chip. There is often enough time and material left over for a chip buyer to request more chips if their demand is higher than expected, but with the shortages and delays all of these blocks are booked solid and no one will give up their place in line. What's more - the tools needed to make these chips are enormously complicated and expensive, which means it can take YEARS to expand their production ability, so "just making more" is basically impossible.
So basically: The machines to make more chips take a long time to make. All of the existing machines are currently working overtime, but it's just not enough to keep up with all the different industries asking for more chips.
@@jlco Fabs normally run between 80 to 90% of their max capacity, to make way for cleaning and maintenance or any urgent industry orders, currently they are running at 100%. These fabs usually take 3 to 5 years to build including the massive buildings, clean said buildings, certify them, receive the necessary machinery, find the workforce, supporting infrastructure (such pipes roads, water filtration systems, and etc.) calibrate, and setup said machinery. On current time tables we are looking at late 2022 at the earliest before the silicon shortage is resolved by new fabs, and this is assuming that there are no environmental or political disputes that affect the existing supply, as the largest company for such production is TSMC a Taiwanese company with 55% of the market share, and most of it's fabs on Taiwan which has A) been having a major water shortage and B) been embroiled in longstanding political disputes (since 1927) With the Peoples Republic of China and Taiwan is controlled by the democratic Republic Of China, both currently claim to be the legitimate government of China and the PRC which is controlled by the Chinese Communist Party has declared that they will "Retake Taiwan by 2049" (though they have never had control of Formosa the Island on which Taiwan resides) by military force if necessary. One of the primary reasons that this has not happened yet is Taiwan has the verbal military backing of the US as the US has brought their Pacific assets to bear everytime the PRC has attempted to take Taiwan nothing yet has happened since the shelling in the 50's and the regular breaches of Taiwanese airspace by PLAAF, though actions may soon occur as the US is currently demonstrating weakness, and much of the PRC's workforce will start to retire in 2028. Sooooo honestly anything could happen.
@@wh0_am_152 Also, very few fabs can produce 200mm silicon for the outdated processes needed to make chips for cars at the volume car manufacturers want. Desktop computer chip lithography these days is 5-12nm. The chips these cars use are very power-inefficient and there isn't that much reason for chip manufacturers to make them because the yields are not as good with the 40+nm chips cars need with their worse yields and fewer features per square mm. Desktop chips were using 40nm processes 12+ years ago. It would speed up the production a smidge and there would be more wafer manufacturers if the car industry didn't demand older process nodes.
If we had invested in actually producing these semi conductors ourselves instead of outsourcing the production to China we’d be in so much better shape.
That goes for a lot of things though, because America is heavily dependent on China to produce many of our components, that's what allows us to price products cheaply and chant Capitalism!
To build a semiconductor factory it cost billions of dollars! And not even with the money you can build one you need ths smartness! Btw this isnt chinas fault. We get out semiconductors chips from tawain which china is trying to claim is aa there but usa doesnt let them. Please do your research
@@TonyMontana_92 I’m fairly certain America was one of the first to innovate the technology for semiconductors, but a lot of the production was outsourced because of higher wages. I appreciate your insight, but I did at least some research.
@@MBustos828 yes thats true but building a semiconductor plan cost several billions on dollars and it isnt permenant. I have family in the that work for honda and tell me this is the reason used cars are getting sold almost as new cars because of the chips.. the plant in tawain had a fire look into it
8:50 That was exactly what I had to do to get a brand new FJ Cruiser in 2017… waited months for it to be assembled, shipped and delivered. No regrets, love it every day!
Well, least I've got my car rebuilt, engine's almost finished and fingers crossed.. won't need doing again for a long time! Just need to keep it maintained and all good.. I hope.
The automotive industry is responsible for a lot of wasted resources - especially when you consider how many cars don't get sold! I would be totally fine waiting 4-6 weeks for a vehicle made to order(and then I could get the exact options I wanted). As opposed to this mass production mess.
Isn't this how it works? I mean, in my country, Spain, when you want a car you go to the dealership, where they have one car, one of each model the company has, you step in, the salesman talks you throu the optionals, show you pic, and then you order the car you want, with the extas you want. You have to wait tho, my father's hyundai took line 6 months to arrive, it was 2003. Edit: man, that system is wicked, i mean, in europe getting a car is seen as a big investment, and a big thing and as such, the customer has to ve very sure they aer confortable with what they get, otherwise he will not buy that specific car. And besides, if i am buying a product, whatever one i want it exactly as i demand, otherwise i'm going somewere else, it's common sense. It's weird, because in all europe the system is the same, even with american brands such as ford or chevrolet
4-6 weeks would be fine but Audi is looking at 16 month delays, VW around a year, I work at BMW and we're still looking at nearly 6 months for most factory order cars
@@augustusimperator.avi1872 In North America large dealerships usually keep 100+ vehicles on the lot at a time. So it's not uncommon to go to the dealership and walkout with a car the same day.
yeah except we haven't been. I don't think you'd miss having active fuel management systems and auto start-stop. It's just bad for the environment, not for you
On the bright side, "Carmax" ads have been begging me to sell my car to them for 25% more than it's worth. I have to admit, it's been tempting... but, then, what do I buy to replace it?
I traded in my 4 year old Colorado for only $7k less than what I paid for it brand new. It was about 20% depreciation. The use of the vehicle alone for 4 years is worth more than what was depreciated
It's not like most people these days travel with a highly sophisticated device in their pocket at all times, that can easily handle navigation and music selection _far_ more efficiently than most proprietary automobile infotainment systems. What a boomer.
Ikr, i don't get why people want like sophisticated communication device in their car when they literally have their smartphone all the time, basic audio and air conditioning system is all i need
@@ratamahatta5306 it's because it's illegal to use the phone while driving, but yet a police officer can't really do too much if they see you messing with your infotainment, getting a ticket for being on your phone will be more expensive then what they'll give you a ticket for while messing with your system if they catch you doing it for a while.
10:14 "Can actually be seen from space" Fun fact: with modern satellite telescopes you can pretty much see if a guy is holding a piece of paper in his hand or not. So yeah, a lot of stuff can be seen from the space nowadays.
Pretty amazing. I bought my 4Runner TRD OR in July of 2019. They had them lined up on the lot with Tacomas as far as you could see. Half of them were covered in dust, pollen etc. from sitting. They couldn’t give them away.
I felt this I recently just got my used Subaru (it’s the best) but it took months to find the right car and price. My dad told me to wait til the beginning of summer THEN it was wait til the time is right. Took months. Every dealer told me to wait.
I never thought I'd say this but this video came in clutch for me 6 months after it was posted because I used it as evidence for a research paper for my college class. Yall do great every video so keep it up.
While it is a stupid and annoying feature, it is definitely not the worst new feature. Electronic parking brakes and rotary shift dials are both 10000% worse.
It's a harsh sell, and would almost be like reinventing the wheel. Modern vehicles have upwards of a hundred different computers in them, alongside about a hundred monitoring components in them. To remove even a fraction of that would require a complete R&D rework of the part of the vehicle they pull the brain from. It's doable, but seeing as they're still making the tech rich cars, and just lotting them lobotomized until they can get the nonessential computers in them, that's a lot of money they have on freeze.
I'm all for driver's cars but unfortunately I don't think it would help much. One of the chips that's in the most demand for cars is display chips for screens. And as of 2018 every new car is required by law to have a backup camera. Tech is just too integrated with safety systems nowadays so unfortunately manufacturers wouldn't be able to release a tech free car even if they wanted to.
Everything is collapsing because US stupid war with China. It will go from bad to worst because too many rich don't know how to or want to build anything for the people, all they can do is just fund like Gov. US was on borrowed time with Chinese trade who was actually building stuff for Americans. Chinese built stuff for their own citizens as well as US. There was a joint plan for High Speed Rail with USA. They dropped it. Joint space tech that could lead to joint early Mars colonization missions was also dropped.
I live the animations they do when cars end up like stacked on top of each other and stuff like that. The detail when the suspension compression is added in. That's truely awesome. I will never get bored with this RU-vid channel unless they cut those animations out entirely. If they do in unsubscribing but seriously you gotta admit they deserve the credit for animating these the way they do.
I worked on the IT department at Ford's Plant in Spain, the biggest, and the only one able to produce a full car from steel spools to finished product, I once saw a NYC Ford Tourneo Connect being finished in the assembly carousel, and I can tell you that the situation is dire, very, very dire.
I foresee the “collector truck” market in 20-30 years being at an all time high. Truck owners know Active Fuel Management, start stop, etc cause nothing but issues in today’s trucks. So a 2021 truck being sold without these, combined with low mileage being sold in 2035-2045 will be astronomically high.
@@JesperHolmgaard Nah. We'll always need fuel for military vehicles and vehicles used by goverment orgs, police, fire, and EMT. Can you imagine a country fighting a war with only EVs? No way.
Fun fact: Many US hospitals ALSO use the just-in-time method to cut down on costs and inventory space. In a facility where it is crucial to have everything you need on hand. Often within minutes or even seconds. While there are people with medical emergencies. God help America.
@@notoriusdrifter40 It's not. And it's not really because they don't want to store stuff. They just can't. For example, a lot of the isotopes used by x-ray machines, MRI scans, etc, loose their radioactivity within days so they need constant replacing. And certain kinds of medicines like vaccines, also last only days before losing their validity or require specific conditions to be stored at all. One of the biggest difficulties in distributing the COVID vaccines in some countries is because of the lack of refrigerated transport to keep them cool. In my country, the government actually resorted to borrowing delivery trucks from ice cream companies to mitigate the issue
@@nong333 The gov of most third world countries never plan ahead. That is why China wins in every situation. If you lead a country. Your suppose to plan for the future. Too bad most democratic countries get new leaders and scrap all the plans all together. So where are my flying cars?
I work at NXP which is a pretty big auto manufacture semiconductor company and back in Feb here in Austin TX we had a Big Freeze which caused us to completely shut the Fab down for the first time in over 20 years (due to the huge power outages). It was crazy we are just now getting back up to the numbers we were making before the freeze (which was still down due to COVID). Also through the whole pandemic we have never shutdown (other then the freeze). It was hell and alot of hoops to jump though but we luckily were able to keep running.
As an engineer working in the automotive industry, I can confirm auto manufacturers themselves reduced their demand of everything that comes from a foreign supplier to about 50%.
@@abimbolaaku2709 Democratic Socialism is about workers owning the means of production and having more democracy in the work place, I don't think you understand what it actually is.
@@neonreign2988 Wrong ¶: everyone understands it and realize it's failed over and over agian. You wanna wait in line for food bring on the sugar coated socialism.
@@neonreign2988 Ignore him. These people are lost cause. They been 1984'ed. They don't even know it. People need to walk the walk and follow their ideology words. Otherwise they are joke.
@@fuckinstinkfish socialism feeds the poor and vulnerable, capitalism doesn't. Capitalism and neoliberal policies virtually consumes and privatizes everything based on the belief that profits can be limitless, only benefiting shareholders. Meanwhile, the poor and working class are displaced.
3:38 So I am not sure how they are made but this little vignette includes the compression of the shocks on the 2 bottom vehicles and it is a beautiful attention to detail. This is just one of so many but the animation team is on point. Great job as always, love the time and effort you all out into these.
Price scalpers really have hurt the whole supply chain issue with anything from gpus to car parts. I've been seeing scalpers and private investors hoard anything from pc parts, car parts and yes pokemon lol. They are flipping them for profit at our expense.
Maybe this will convince automakers that all those bells and whistles aren't really necessary and will start offering vehicles without lane assist, adaptive cruise control, etc. Especially if it means selling a car vs not selling anything.
@@tony_5156 Yup, this has caused people to become lazy behind the wheel since they think all those safety features etc, are gonna protect them all the time.
Yup. I work at dealership that host the "Big 3" American brands. We went from each lot having at LEAST 500 cars to less than 20, even then a majority are pre-owned trade-ins. We're even going as far as buying repos and auction just to keep an inventory.
I work for toyota and they announced a 40% reduction to production to focus the remaining supply of semi conductors on the best selling models. At the start, Toyota had stockpiled around 6 months worth of chips. Now the choke point is the chips are made, but there is not enough people to test and ship them.
My one worry is that even after supply matches or exceeds demand, prices will continue to stay at thier current (far too) inflated levels. That includes used cars as well.
I have been saving for 2 years now for a new Mk7 golf r. This year I was finally ready to take the plunge but prices have gone up by at least 3k... Love the video guys 👍
They will the start/stop feature is just absurd. The alternator needed to be beefed up in order to withstand the on/off current demand. And other things that in reality are just annoying.
Always loved wheel house but as of late the videos have been even greater than ever. We appreciate all of the hard work done by Nolan and the rest of the Donut crew. Great Job guys!
There's a shortage of 90nm and larger transistor based chips. There's plenty of supply of 14nm and smaller transistor chips..... Auto industry just refuses to move on from 20 year old technology....
The dealer where I got my Taco has been "begging" for my truck essentially since I bought it. Most recently I've been offered negotiations starting at $47k+. I got my truck for under sticker at $34 (off-road 4x4) but there's no way I'm selling mine. New ones are double the price so I'd still be in the red in buying a new one (if I could even find another)
Yep, I work at KMMG in West Point, Ga where we proudly build the Kia Telluride and we have had modified schedules due to the semiconductor shortages. Everyone these days uses the "Just In Time" supply process.
This isn't just affecting the production of new vehicles. It is also severely affecting the production of new sensors and parts to repair vehicles already on the road. Truck drivers are having a really hard time when it comes to new sensors and this is causing more disruption in distribution with many trucks being down for weeks simply awaiting a new sensor.
The computer chip shortage has had me paranoid about my job security. I work at a bus dealership where most of our vehicles are E-Series vans converted to buses. Well no chips, no new buses. We’ve been surviving off service work and reselling used buses. I’m sorry for all the techs and factory workers having to deal with this.
I would like to see you guys reach into the theoretical of what future generations will do to make fast cars and how modern manufacturing is leading to the downfall of car culture
car culture will never have a downfall, its been around for many years and it even during times where some car culture heavy cars weren’t being manufactured, with everybody bringing in new and old cars like ford bronco, Nissan z, the new 3jz engine for the mk5 supra, car culture will never die.
I bought a “new” used car this year. I know I over paid on the car by about 5k but that being said I got $5500 worth of work done to the car for free on 100 day 4100 mile carvana warranty. Now my car has all its maintenance done and bunch of new parts and is a good base to start working on and making more power!
Older cars price rise is because the lack of replaceable parts. Some old cars become collectors. It cost tons of money to find new parts for the cars. They are considered phased out. The Gov said by 2030 no more sale of ICE cars. So people want to sell it more in case they want to take the cars apart and replace parts on their own cars.
@@makemap mate, what recreational drugs are you on? Ive been int he spare parts game for 27yrs and what your saying is so far from reality its not funny… why spout on about old cars? This convo is about new cars, its common sense older parts are getting harder to find, but theyre still being made you just have to look harder and pay more. Please keep your comment on topic and not go off on some unrelated tangent
@@jeepnutscotty Not every where. Not all countries have spare parts factory. Yes, you just said you have to pay a price for the spare parts. The increase cost is not worth it for many people who are on to newer cars who can get parts replaced cheaper. I see BMWs for $2000 dollars in Canada. I heard people saying replacing parts cost like thousands to tens of thousands of dollars. Your just better off buying a new car for daily driving. Most old cars are way slower than the new cars and have very high gas usage. Its not worth owning that is why old cars are being phased out. When Gov force EV on us your going to see a lack of parts for ICE engines.
Day 21 asking for a new show: Daily Donut (or DD): they pick a staff member's car, interview them about past and future plans with the car and drive it!
Here's an idea...get rid of all that needless SMT and Tech in cars, and just build some basic vehicles that the common working folks can afford without going balls deep in debt for years on end.
I came to the comments specifically looking for someone to point this out. Surprising that so few see how simple of a fix this is. Just make a few runs of 90's style cars! Engine, wheels, steering wheel, seats. No need to complicate everything. If people want extra crap, they can always go aftermarket! You know, the way it used to be!
People say this but the ones who actually buy new cars want those features. Build a cheap everyman car in the fashion you expect and most people will just buy a more feature laden model used instead. For the features involved and adjusted for infaltion, modern entry level cars are actually very economical/competitive in price. Its the wages half of the equation thats lacking.
I'm a salesman at a small rural GM store. All the metro stores are charging above MSRP but we decided to stay at MSRP and if you have a trade we will negotiate on that. Trying to do the right thing to maintain good will in our area. It's the weirded market I have ever seen, that's for sure.
Ford just had an insanely profitable year. The build to order at higher prices is here to stay. Less overhead for carmakers and higher margins. They are loving the shortage.
I'm very thankful my local dealer always sells at or below MSRP excluding aftermarket customized cars/trucks, I just hope MSRP doesn't get too stupid, and hopefully this climate will be the demise of all this shielding options behind packages, what if I want ac seats without the 725 speaker sound system and the 36 inch flatscreen dash and all the active cruise control and fuel management crap.
It comes down to individual dealer practices, although I see your point as the majority seem to be marking up their new inventory as well as used. (Toyota Salesman here) Our dealership has priced our used cars to reflect the market but we don't markup any of our new cars. Doesn't matter if it's a TRD Pro Tacoma, or a base model Corolla, we still sell it for MSRP right now.
@@kelly2631 well u dont need to change gears always in a manual, u can choose to cruise at a speed and just text or do anything u want besides people get used to it!
If it looks like Mad Max the world will actually run out of replaceable parts. Movies aren't real life. Don't make it an agenda. Since Covid some autoshops had no new parts to replace parts of the cars because they came from China.
Last year I got my 2019Camry from hertz. It was going out of business in my area, and I ended up buying a car from them. It didn't have that many miles either for a rental
I worked in manufacturing and saw just in time lose contracts and loss of orders due to time restraints resupply and if anyone missed a work day it would be a snowball affect.
@@Poverty_Welder They'll have to. It'll be basic supply and demand in action. The companies simply can't afford to sit on that inventory when it is sellable. They'll dump it as fast as they can.
@Paul S - no. They can't afford to have all the money tied up in the sitting vehicles already made to parcel them out slowly at inflated prices. So they'll sell the backlog off as they're completed when the chips come in. This will flood the supply side, and prices will come back down. Now if they didn't have huge stockpiles of mostly finished vehicles, that could be different, but as it is they're stuck with hundreds of millions of dollars tied up in unsellable inventory- they will fix that as they can by moving them as the needed parts come in.
Yep, i was going to apply at toyota plant several years ago right before sunami hit Japan. Car production was put on hold because they don't manufacturer an excessive amount parts .
I work for a major FREIGHT company. I can tell you for a fact, we're still 3 months behind and we're not the only ones. Most of the other major freight carriers are also 3+ months behind. I'm working a mandatory 6 days a week along with many others trying to get caught up. I delivered some motorcycles to a dealership and they've been waiting for those motorcycles for 8 months. This is going to take a lot of time to get caught up.
I also want to ad that the country of Taiwan creates 70%+ of the worlds supply of microchips/semiconductors and WHEN china invades to "retake" Taiwan things will get 100x worse than they are now.
@@adamc7987 Mechanical versions existed from the 1930’s to 1990’s… Microcontrollers made it much lighter and more flexible to have variable timing and direct injection but the underlying technique is quite old.
Being in the car business our inventory is down, creates a huge demand. I just had the best month of my life in the car business last month, huge money per truck, and that's with a empty dealer lot. Customers aren't even negotiating anymore, they are just happy to get a vehicle.
Also be aware that quality control of semiconductors and chips has lessened to increase the product output. You may want to hold off on a new car for a while anyways to avoid electronics issues
Source on this? I work in the semiconductor industry and I highly doubt any of the big players (my company included) are sacrificing QA to increase output. They wouldn't make such a brash decision and risk torpedoing lucrative relationships with big auto manufacturers in the long run. Now, auto manufacturers themselves sourcing their parts differently to meet production quotas, that's a whole other issue that doesn't relate to original manufacturing quality.
@@electromeistro2869 then it's probably the latter situation. I have a family friend who runs a big name family dealership in my area that does multiple makes that told me. I would fully believe that auto manufacturers are sourcing lower quality parts to attempt to meet demand
@@railerswim that would make more sense to me. Automotive-grade semiconductor parts (commonly refered to as Q100 or -Q1 suffix) go through additional steps to get qualified as such and as so are held to a higher QA standard than "normal" parts. Big semiconductor manufacturers make these parts specifically for the auto industry since there's big money to be made there. And since there's lots of competition at that level (at least 4-5 big manufacturers competing for auto business with countless smaller ones too) historic trust between companies goes a long way. All of that is to say I doubt big companies would lower their manufacturing standards to ship more parts. Unless they want to reap a serious windfall if/when they got caught (not saying it's impossible, just I don't think it's likely) My thought is maybe some auto manufacturers are buying "grey market" parts. Basically they're the exact same parts and are even Q100 certified, but the chain of custody is shady and their integrity can't be garenteed by the original manufacturer (read as: not legally liable). It's an interesting situation for sure. And it'll be even more interesting to see when/if there's any fallout from this with lawsuits or recalls or stuff like that.
Micro-chips are made in multiple countries..... That's not the problem. The problem is the 20 year old technology that the automotive industry insists on sticking with purely due to price. Every year, the cost to produce the micro-chips that the automotive industry uses, goes down....while the auto makers charge customers more for them.
Everything that goes up will come down. Think about this, when the dealerships lots fill up with a over supply of vehicles prices will level than the discounts will begin again. What will happen to all of the buyers who have paid $5k to $50k over window?
Believe me, I definitely see the effects of it. I drive a car carrier hauling new cars. It seems like every dealership is bare. I know of some that have no new cars on their lots. Lately, I’ve had salesmen celebrating when I pull my truck on the lots only to get disappointed to find out they’re only getting one or two cars and not the ones they want or need. Some people are having to wait a month or two to get cars that they’ve ordered in particular. It’s not only hurting customers, it’s hurting my pay along with salesmen and customers getting what they want or need.
I'm with you on 'waiting a while to buy a new car'. I actively looked at trading my 2018 Jeep Wrangler Unlimited JL Sahara on a new Gladiator. Jeep already sets the MSRP on Wranglers and Gladiators high. Because of the limited supply, event though I live in a fairly large market in the Seattle area, fining a unit in the color and with the options I want requires that I consider dealers that are up to 300 miles away. Also, the dealers are all tacking on high markups on top of the already high MSRP. I don't need a new Gladiator, I like my JLU Sahara, getting a new Gladiator is a want. I don't want to pay the premium all the dealers are asking right now, so I'll wait until I can buy one for less than MSRP. If that takes a long time or never happens, I'm quite happy with my current Wrangler.
