Ford Production

[5030]

Kind of like the Takata air bag scenario.

 

[BravoXray]

I think that is too simplistic and an easy excuse. I believe It’s more due to mismanagement by auto executives.

What kind of management allows 70% of its total industry supply (a supply that, if interrupted, puts you out of business) to come from one company or one plant or even one country?

No contingency planning?

No risk management assessment?

MoKelly

Like most things, it's not a problem, until it's a problem.
Just in time parts supply is one of the weak links then something like the recent freeze in Texas throws a monkey wrench into many things all at once.

 

[Bearsixty7]

There's a bit of truth to that. High demand for consumer electronics (like the PS6) have put a strain on chip makers.

Couple that with a fire at a major Japanese chip maker, and you can also blame Texas and the power grid fiasco they had.

Global Chip Shortage Set to Worsen for Car Makers

Global auto makers who had expected the semiconductor supply crisis to subside in the spring are now warning that chips will remain scarce for months while a second-half recovery is fraught with uncertainty.

www.wsj.com

The Power issue in Texas would have barely caused a blip in production, if any. The fabs never shutdown here around Dallas so someone is smoking some crack!
I didn't hear of the Austin fabs having any major issues either.

 

[Citydude]

I assumed the manufacturing of the chips were curtailed because of the covid lockdowns.

 

[Bearsixty7]

I assumed the manufacturing of the chips were curtailed because of the covid lockdowns.

Nope, Not at all! No lock down, just a few changes to how you enter the buildings, masks are provided for entry and the work force was divided and segregated into 2 groups in case someone was infected in hopes it would not take out the entire workforce. One team enters and exits the buildings on one path and the other team has their separate path for entry and exit. This is still in effect today.

 

[MossRoad]

The Power issue in Texas would have barely caused a blip in production, if any. The fabs never shutdown here around Dallas so someone is smoking some crack!
I didn't here of the Austin fabs having any major issues either.

Samsung Electronics' Texas chip production returns to near-normal levels

Samsung Electronics said on Tuesday that production at its U.S. chip plant at Austin, Texas had returned to near-normal levels as of last week after more than a month of disruption that exacerbated a global chip capacity crunch.

www.reuters.com

Texas requires all chip manufacturers in Austin to stop production `

Texas requires all chip manufacturers in Austin to stop production. This closure is already causing shortages of chips worldwide

www.gizchina.com

 

[5030]

Don't matter much to me. Not in the market for a new truck or car anytime soon. My little buggy gets 40 mpg. I'm good with that.

 

[RickB]

The Texas crack user has been identified.

 

[Frankenkubota]

Of more serious concern is that someone has pointed out that our military systems now rely on ICs that are made in foreign countries.

Been goin on for years. A big part of my business was called ecm, electronic counter measures, defense.

At one time there was a hard push to buy critical components from the chinese.

Sometimes ya get what ya deserve.

 

[Frankenkubota]

The local Ford dealers seem to have plenty of new and used cars and trucks in stock. But next door, the Chevy dealer has very few Chevys, just one new pickup, and a few Cadillacs, while their Nissan branch on the same lot seems pretty well supplied. They have a storage lot across the street that was always full of new and used cars and trucks, but is almost completely empty now.
They have had a new shiny red Corvette in the showroom for a couple of months now though.

1 year waiting list on new corvette. My brother just ordered one.

 

[Frankenkubota]

I think that is too simplistic and an easy excuse. I believe It’s more due to mismanagement by auto executives.

What kind of management allows 70% of its total industry supply (a supply that, if interrupted, puts you out of business) to come from one company or one plant or even one country?

No contingency planning?

No risk management assessment?

View attachment 696738

MoKelly

I had a huge opportunity with IBM in the 80s. I sold high frequency electronic stuff to the defense industry so no real match but, IBM decided to get into some business that would have require a couple of our very high frequency devices.

In my world that would have meant big buck$.

It would have engulfed the company i was representing. We did not get the business.

If memory serves, IBM had a policy that they would not allow their portion of your business to exceed 20% of your total.....or something like that.

That way, when your parts got designed out, your entire co didn't go under.

I guess there's something to be said about that but, tuff to miss that one!

 

[Hay Dude]

I think that is too simplistic and an easy excuse. I believe It’s more due to mismanagement by auto executives.

What kind of management allows 70% of its total industry supply (a supply that, if interrupted, puts you out of business) to come from one company or one plant or even one country?

No contingency planning?

No risk management assessment?

View attachment 696738

MoKelly

Agree. Blaming Texas for a power grid fiasco? That was a cold snap fiasco. BTW, America has a power grid fiasco, not just Texas.
In the name of national security, manufacturing of critical components needs to either be hardened of spread out to several locations

 

[Citydude]

I was told I was number 15, yes 15, on a waiting list for a Ford Bronco at one dealer while another dealer had 3 in stock.

Either people are dealer loyal or not willing to drive elsewhere to buy.

 

[Citydude]

Agree. Blaming Texas for a power grid fiasco? That was a cold snap fiasco. BTW, America has a power grid fiasco, not just Texas.
In the name of national security, manufacturing of critical components needs to either be hardened of spread out to several locations

An economic climate of low tax, a good labor base, low crime and cost of living is there to be had for manufacturers.

Weatherby moved its Production plant to Wyoming for those reasons.

 

[Frankenkubota]

I read today that Ford says it’s production will be 50% lower in Q2 due to chip shortages.

Looks like cars and trucks will be in short supply and at higher prices.

And the beat goes on.

MoKelly

neighbor is in the lumber and logging business.

he says, get ready for a paper shortage. he says the mills are not operating at any where near capacity. he said it's due to transportation problems.....can't hire drivers.

i said.....better stock up on TP before the gals hear about that!

 

[Frankenkubota]

I read today that Ford says it’s production will be 50% lower in Q2 due to chip shortages.

Looks like cars and trucks will be in short supply and at higher prices.

And the beat goes on.

MoKelly

I was in the semi conductor business but..... nothing like the "chip" business. that's a commodity business, not real sexy so, let someone else do it.

Again, it's was not my business but I don't completely understand why it was out sourced. There is very little unskilled labor involved so it was not for cheap production labor. A $4 billion chip fab is mostly equipment.

I smell a rat!

I will never forget when I told the owner of the Italian company i was representing that i could source some very expensive materials in the US, much much cheaper than his Italian supplier. He simply said he felt an obligation to support his countries economy.

Can you imagine hearing that at the Apple annual meeting?

 

[MoKelly]

I’m not sure you hear anything at an Apple annual meeting other than cheers and a cash register!

MoKelly

 

[Bearsixty7]

Samsung Electronics' Texas chip production returns to near-normal levels

Samsung Electronics said on Tuesday that production at its U.S. chip plant at Austin, Texas had returned to near-normal levels as of last week after more than a month of disruption that exacerbated a global chip capacity crunch.

www.reuters.com

Texas requires all chip manufacturers in Austin to stop production `

Texas requires all chip manufacturers in Austin to stop production. This closure is already causing shortages of chips worldwide

www.gizchina.com

That doesn't make any sense. Power was only an issue for 36-48 hours and most fabs have their own backup power to maintain the minimum needs, too many deadly chemicals for them to lose power fully.

I think they saw an opportunity to increase prices honestly.

 

[Whidbey]

There's still a lot of chip fabs in the US. The us military has been on a COTS drive for a while especially for non sensitive systems, purely to lower costs. Some of those may allow foreign made chips. The US government is aware that we need to increase our domestic chip production for military uses. I found a DARPA program to do that with just a few minutes of searching.

Generally the military is well aware of nationality issues with products they buy. I've personally seen a number of instances where even foreign born US citizens were kept off of projects. That may be vendors being extra cautious more than rules set by the government, but there's certainly a lot of awareness of the issue.

My friend, the government was certainly using COTS IT equipment for it's infrastructure when I retired several years ago. One of contractors supplied us with refurbished routers that spent some time in China. Some of these routers were in classified systems. One of my last activities was replacing the ones in the classified areas. You cannot make this stuff up

 

[5030]

1 year waiting list on new corvette. My brother just ordered one.

I'm sure that list will shrink as potential buyers drop off with various reasons. like lost my job or cannot afford one or whatever. I'm on the wait list for a new full size Bronco. The new Vette is a tremendous buy, even the high performance one for 82 g's.