*Investors Blog*

... Ford has plans to bring the software work in house, which is a very smart move.
What is smart for Tesla may not be smart for Ford. I suspect the Big 3 corporate culture might not be attractive to the best and brightest in both salary and policy categories. Bad programmers are not going to help them.
Now, if Ford is willing to change their philosophy completely to come into the Third Millennium, then I agree with you.
 
It’s a shortage in the sense that the supply went to others because car companies cut their chip orders in early 2020. So it is an issue of their own doing, but they like to cry about it as if it was outside of their control. They screwed up, plain and simple.
Forecasting is tough. Yes, they cut orders and chip companies focused on higher margin high tech chips for cell phones and computers.
The car companies tend to not be vertically integrated so they depend on others for critical path components; primarily firmware programming.

As was said before, Tesla was able to repurpose available chip inventory and deliver cars, because they are a tech company first.
 
What is smart for Tesla may not be smart for Ford. I suspect the Big 3 corporate culture might not be attractive to the best and brightest in both salary and policy categories. Bad programmers are not going to help them.
Now, if Ford is willing to change their philosophy completely to come into the Third Millennium, then I agree with you.
FYI, Ford's tech center is in Silicon Valley. They are learning and are committed to firmware development. I wish them luck in this endeavor.
 
Chips, chips, chips...
The whole economy isn't hinged on chips for making cars. It might be the "big excuse" for everyone else in the economy to jump on the run-away inflation train and take a ride as long as possible to reap more profits. Someone could start a business tomorrow, and discover they could sell their product for $100 and still make a $25 profit, but since the inflation train is really rolling they will sell it for $150 and make $75 instead, because people are now "tuned" to pay inflated prices, so might as well get in on it too.
 
The whole economy isn't hinged on chips for making cars. It might be the "big excuse" for everyone else in the economy to jump on the run-away inflation train and take a ride as long as possible to reap more profits. Someone could start a business tomorrow, and discover they could sell their product for $100 and still make a $25 profit, but since the inflation train is really rolling they will sell it for $150 and make $75 instead, because people are now "tuned" to pay inflated prices, so might as well get in on it too.
Chips are a critical path component on automobiles. That's not an excuse. Prices are set by the market. Cars are expensive because demand is in excess of supply.

Would you sell your home for less than market to someone because you felt bad it went up in value?
 
Ford has plans to bring the software work in house, which is a very smart move.
I do not find that comforting with their corporate culture. I can only imagine the cost-cutting and unrealistic timelines they'd subject those poor software engineers to in the name of profit. At this point, Ford needs MORE outside help - people who actually know what they're doing and take pride in their work.
 
Chips are a critical path component on automobiles. That's not an excuse. Prices are set by the market. Cars are expensive because demand is in excess of supply.

Would you sell your home for less than market to someone because you felt bad it went up in value?
Read my post again ... I was talking about the whole economy, not just the automotive industry business.
 
Read my post again ... I was talking about the whole economy, not just the automotive industry business.
Exactly, while some industries are impacted, others are not, but the narrative is the same, blame the chip shortage.

For example, news for Nvidia came out and it turns out they were selling their cards to miners or hoarding the cards themselves in order to keep the supply low and skyrocket the prices for the consumers. But they were blaming chip shortages for no cards on the shelves during 2020, 2021, and most of 2022. They only announced a release date for their top of the line 4090 new 4000 series cards, not for 4080 and 4070 was not even mentioned. They want to sell the stockpiled 3000 series cards first.
 
Exactly, while some industries are impacted, others are not, but the narrative is the same, blame the chip shortage.

For example, news for Nvidia came out and it turns out they were selling their cards to miners or hoarding the cards themselves in order to keep the supply low and skyrocket the prices for the consumers. But they were blaming chip shortages for no cards on the shelves during 2020, 2021, and most of 2022. They only announced a release date for their top of the line 4090 new 4000 series cards, not for 4080 and 4070 was not even mentioned. They want to sell the stockpiled 3000 series cards first.
That's not the point. By the way, NVIDIA programs most of the chips' firmware; fabbing chips is only the 1st step. Tesla programs their own chips so they were far less affected by the chip shortage.

Prices are set by the market. Some companies have huge leverage (like big oil) because there is no viable substitute for their product and we have to have it. And yes, they collude to get the best numbers for themselves.
For profit companies are in the business of making money. They are not our friends. Don't get me wrong; I am a capitalist. Are the prices fair? That depends on which side of the deal you are on.
 
https://nypost.com/2022/09/22/meta-using-30-day-list-workers-must-find-new-role-or-leave/

“ Facebook’s corporate parent Meta — scrambling to slash costs as its stock price tanks — has imposed a “30 day list” that requires some employees to either find a new job within the company or leave, according to a report.

The scary ultimatum for some staffers was enacted as CEO Mark Zuckerberg and other executives are reportedly looking to slash expenses by 10% or more. As Meta reorganizes some departments, workers on the “30 day list” who can’t land a new gig are “subject to termination,” the Wall Street Journal reported. “

.
 
https://nypost.com/2022/09/22/meta-using-30-day-list-workers-must-find-new-role-or-leave/

“ Facebook’s corporate parent Meta — scrambling to slash costs as its stock price tanks — has imposed a “30 day list” that requires some employees to either find a new job within the company or leave, according to a report.

The scary ultimatum for some staffers was enacted as CEO Mark Zuckerberg and other executives are reportedly looking to slash expenses by 10% or more. As Meta reorganizes some departments, workers on the “30 day list” who can’t land a new gig are “subject to termination,” the Wall Street Journal reported. “

.


I can only imagine the backstabbing and roughshodding going on right now at FB. A real life Squid Game.


“I'd love to change the world - but I don't know what to do
So I'll leave it up to you”
 
https://nypost.com/2022/09/22/meta-using-30-day-list-workers-must-find-new-role-or-leave/

“ Facebook’s corporate parent Meta — scrambling to slash costs as its stock price tanks — has imposed a “30 day list” that requires some employees to either find a new job within the company or leave, according to a report.

The scary ultimatum for some staffers was enacted as CEO Mark Zuckerberg and other executives are reportedly looking to slash expenses by 10% or more. As Meta reorganizes some departments, workers on the “30 day list” who can’t land a new gig are “subject to termination,” the Wall Street Journal reported. “

.
I can personally tell you, Silicon Valley is a brutal place. Cyclical business; high highs and low lows. People think they are gonna ride the wave forever; they just might get a really rude awakening.
 
In D.C. this week, bank CEOs and Congress

An exchange between Jamie "The Hurricane" Dimon and Democrat Rashida Tlaib of Michigan was probably the highlight of the entire hearing. Tlaib asked each of the CEOs to say with a "yes" or "no" if their banks had any policies against funding new oil and gas products. She started with Dimon. He replied without hesitation...

Absolutely not, and that would be the road to hell for America.
 
https://nypost.com/2022/09/22/meta-using-30-day-list-workers-must-find-new-role-or-leave/

“ Facebook’s corporate parent Meta — scrambling to slash costs as its stock price tanks — has imposed a “30 day list” that requires some employees to either find a new job within the company or leave, according to a report.

The scary ultimatum for some staffers was enacted as CEO Mark Zuckerberg and other executives are reportedly looking to slash expenses by 10% or more. As Meta reorganizes some departments, workers on the “30 day list” who can’t land a new gig are “subject to termination,” the Wall Street Journal reported. “

.
The 30 days to find a new job is not all that uncommon IMO (this reads more like you're getting laid off and have the opportunity to find something new internally before heading for the door). I've been through 4 reorgs in the last 7 years, each one comes with the opportunity for those getting laid off to post for openings and candidates indicate if they are being impacted by layoffs.
 
Another down day in the world for the markets.

Watch the S&P. We are getting closer to the 3675 level which would be a retest of the prior low. If that is breached we will go much lower.
 
A interesting scene ongoing right now. Stocks going lower and lower. Bonds are getting hammered and precious metals are going lower as well.

I don’t think I’ve seen this before.
 
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