Blaming a “chip shortage” is too vague. Which one is there a shortage of?
Which automaker wrote contracts that didn’t guarantee part availability above other buyers?
Last I heard, in auto, if you’re a few hours late on a parts delivery you’re heavily penalized and the line risks being shutdown.
For what it's worth, the company that assembles the dashboards for these vehicles started causing a lot of downtime, to the tune of 30-45 minutes in many cases, starting around August. "They simply can't get the parts" - I feel like this article is the explanation why.
Maybe, but I suspect outsourcing to distributors is to blame. The automakers almost certainly outsourced the inventory risk and nobody is holding inventory anywhere.
If the automaker is the only customer having a parts problem, then the distributor has risk because a penalty by the automaker will absorb their profit from other customers.
If every customer is having a parts problem, the distributor can just laugh and say "Penalize us and we'll drop you and maybe declare bankruptcy. Have fun getting a new distributor in this mess after you penalize us."
Welcome to Always Late (aka Just In Time) Inventory.
Can't help but feel like "weak demand" is just as big an issue here. Car sales dropped 15% last year.
On the other hand, everyone starts to feel less in control of their destiny when even the largest corporations are powerless against supply fluctuations.
I believe it is a good thing though in the long run. A world power that knows it needs the entire world to continue prosperity is one that is less likely to blow up the world...
