DATASTREAMThe Global Chip Shortage Impact on American Automakers

[wemay]

The Global Chip Shortage Impact on American Automakers

As the global chip shortage causes delays in automotive production, what models and manufacturers are being hit the hardest?

www.visualcapitalist.com

 

[Snowflake White]

The less chips the better in a car if you ask me.

 

[PWMDMD]

The less chips the better in a car if you ask me.

Except when they are all designed to use chips and because they are unavailable inventory for vehicles is low and prices are sky-high.

 

[Snowflake White]

Except when they are all designed to use chips and because they are unavailable inventory for vehicles is low and prices are sky-high.

But who really drove this, NOT the consumer, I would bet if you asked most people what they really wanted in a car, many would tell you
LESS complication, and higher build quality and durability. But of course they don't want to ask these questions because they won't be able to
fleece consumers to the degree they do on profit margins.

 

[dishdude]

But who really drove this, NOT the consumer, I would bet if you asked most people what they really wanted in a car, many would tell you
LESS complication, and higher build quality and durability. But of course they don't want to ask these questions because they won't be able to
fleece consumers to the degree they do on profit margins.

Consumers want safety, fuel economy, tech and convenience features...probably in that order. All of those attributes require chips.

 

[TeamZero]

Interesting.....I would have expected higher and more wide ranging numbers than that. We can hardly get ANY new trucks at all.

 

[Pew]

But who really drove this, NOT the consumer, I would bet if you asked most people what they really wanted in a car, many would tell you
LESS complication, and higher build quality and durability. But of course they don't want to ask these questions because they won't be able to
fleece consumers to the degree they do on profit margins.

Here you go

 

[4WD]

Think Cline and Trav can tell you vehicles have been using chips for a good while …

 

[meep]

If it has a digital display, radio, odometer…. I’m pretty sure they entered the auto world in the 70s. Pretty sure the 1989 accord had more processing power than the space shuttle iirc.

 

[PWMDMD]

But who really drove this, NOT the consumer, I would bet if you asked most people what they really wanted in a car, many would tell you
LESS complication, and higher build quality and durability. But of course they don't want to ask these questions because they won't be able to
fleece consumers to the degree they do on profit margins.

What?! YES, the consumer! Maybe not YOU but the current products in the market ARE a reflection of what consumers want and are willing to pay for in their vehicles. If there was serious consumer pressure to simplify vehicle technology and reduce the number of processors then some manufacture would be pushing into that niche market and yet I don't see any commercials pitching the idea to forget all those other overly complicated vehicles and buy this simple technology-free vehicle.

Why? While the software in many infotainment systems is annoying and can be buggy, overall vehicle reliability has little to do with the electronics. Matter-of-fact, I can't think off the top of my head (I'm sure there are examples though) of ANY major catastrophic issues with any manufacturer that was due to a failure of the electronics but I can think of many cases where a catastrophic failure was due entirely to mechanical failure.

 

[TeamZero]

But who really drove this, NOT the consumer, I would bet if you asked most people what they really wanted in a car, many would tell you
LESS complication, and higher build quality and durability. But of course they don't want to ask these questions because they won't be able to
fleece consumers to the degree they do on profit margins.

Actually most people DON'T want the simple vehicles. We hardly ever sell and base/cheap/low option vehicles....from any brand. I don't want one either. I'll gladly take the new stuff, over old. Cars are also waaaaaay more reliable than old. My god the amount of "maint" we used to do back in the 80s....engine overhauls, trans overhauls, carb overhauls, the list is huge. That kind of work has really shrunk, other than some bad CVTs, and hyundai engines. NO WAY do I want to go back.

 

[PimTac]

But who really drove this, NOT the consumer, I would bet if you asked most people what they really wanted in a car, many would tell you
LESS complication, and higher build quality and durability. But of course they don't want to ask these questions because they won't be able to
fleece consumers to the degree they do on profit margins.

They have been putting chips in cars for decades. Also, today’s automobiles are assembled with better fit and finish and durability than ever before.

 

[Snowflake White]

What?! YES, the consumer! Maybe not YOU but the current products in the market ARE a reflection of what consumers want and are willing to pay for in their vehicles. If there was serious consumer pressure to simplify vehicle technology and reduce the number of processors then some manufacture would be pushing into that niche market and yet I don't see any commercials pitching the idea to forget all those other overly complicated vehicles and buy this simple technology-free vehicle.

Why? While the software in many infotainment systems is annoying and can be buggy, overall vehicle reliability has little to do with the electronics. Matter-of-fact, I can't think off the top of my head (I'm sure there are examples though) of ANY major catastrophic issues with any manufacturer that was due to a failure of the electronics but I can think of many cases where a catastrophic failure was due entirely to mechanical failure.

No, this is the result of car manufacturers hiring consulting agencies to do footwork which involves massive surveys, and you would THINK that it would be a definitive way of finding out what most consumers want in vehicles, however it is NOT. What most often happens is the mfr hires the consulting agencies to give them the answers they want to hear (highest profit margin answer) and sure enough the firms are happy to give the results they want, whether they are accurate or not, more often than not the results are deliberately skewed to show whatever the client wants.

 

[Skippy722]

No, this is the result of car manufacturers hiring consulting agencies to do footwork which involves massive surveys, and you would THINK that it would be a definitive way of finding out what most consumers want in vehicles, however it is NOT. What most often happens is the mfr hires the consulting agencies to give them the answers they want to hear (highest profit margin answer) and sure enough the firms are happy to give the results they want, whether they are accurate or not, more often than not the results are deliberately skewed to show whatever the client wants.

People want options not stripped out entry level models. Has absolutely nothing to do with consulting firms or what the manufacturer wants. Try selling a car with manual locks, crank windows, and AM/FM only radio with no aux input in 2021, it won’t sell well at all.

 

[Snowflake White]

People want options not stripped out entry level models. Has absolutely nothing to do with consulting firms or what the manufacturer wants. Try selling a car with manual locks, crank windows, and AM/FM only radio with no aux input in 2021, it won’t sell well at all.

People are TOLD what they want via marketing. You really don't think SUVs became popular because they just all of a sudden wanted them?
Most consumers are led by the nose, they just don't know it.

 

[dbias]

They don't make them like they used too. Thank goodness.

 

[Pew]

No, this is the result of car manufacturers hiring consulting agencies to do footwork which involves massive surveys, and you would THINK that it would be a definitive way of finding out what most consumers want in vehicles, however it is NOT. What most often happens is the mfr hires the consulting agencies to give them the answers they want to hear (highest profit margin answer) and sure enough the firms are happy to give the results they want, whether they are accurate or not, more often than not the results are deliberately skewed to show whatever the client wants.

Then buy a base model without any options and stop thinking what you want is what everybody else wants.

 

[Snowflake White]

Then buy a base model without any options and stop thinking what you want is what everybody else wants.

You can't buy what the manufacturers refuse to sell. Oh and some of them are cagey, they'll put them up on their websites but it is impossible to order them because the dealers claim they cannot. On various car websites for different makes I see many threads about the inability to buy basic models, even by special ordering them, while they are listed on the websites by the mfrs.

 

[JustinSL]

I’m waiting for the chip shortage to be over since Ford has a ton of F350s sitting in Ky. Then try to score a good deal on a 7.3 gasser.

 

[PimTac]

It’s a conspiracy!!