Ford Production

[Frankenkubota]

Just In Time manufacturing is in place for several reasons.

Inventory tax is one of them. You don't want to get caught holding personal property (inventory) at tax time. So you don't keep anything in stock until you absolutely need it.

That applies to both the maker of a product and the makers and suppliers of the parts and materials for those products.

So they aren't going to keep a bunch of finished products in stock. They aren't going to keep a bunch of parts to assemble those products in stock. And their suppliers of the materials to make the product aren't going to make the materials far in advance.

All of those factors result in a very thin supply line, from raw materials to finished products, that is easily disrupted and hard to restore back to full capacity.

Here's a list of states that still have full or partial inventory taxes as of July, 2020.

View attachment 698183

We used to play so many stupid games trying to hide inventory.....or avoid the penalties. I remember getting overtime pay once for staying to load a truck. Once it was on the truck it was no longer our inventory. Sometimes a signed document changed the status of the inventory from ours to theirs. Bonded on site 3rd party stocking....lots of games.

I remember knowingly shipping scrap to Chrysler just so we could say we met contractual shipping requirements.

 

[MoKelly]

It is what it is ...is a legal term. When you hear that, you just got screwed.

I guess, as someone famous once uttered, “it depends on what the meaning of is is”.

MoKelly

 

[Frankenkubota]

This Chip shortage still doesn't make sense. The power issue in Feb didn't halt TI here in NTX and I really don't believe the Austin interruption was but a few days and it takes no time to get everything back to full production. There is something else going on here. I suspect maybe a labor issue elsewhere due to the unemployment payouts with the covid addition is just keeping more people from going back to work and not necessarily in the chip making sector.

I don't understand how labor costs have so much impact on semi conductor prices.

I was in the semi business but in a very very odd corner of that world. The companies I represented did only 1 off, application specific, defense related god awful expensive stuff. The cost there is mostly high level engineering and development and of course, stroking the govt. They also used a very expensive semiconductor material, not silicone.

I guess the semis used in consumer goods are pretty basic and well established both in terms of performance and process?

I've been in a number of big fabs. It was almost all automated. Where's the labor costs?

 

[Bearsixty7]

I don't understand how labor costs have so much impact on semi conductor prices.

I was in the semi business but in a very very odd corner of that world. The companies I represented did only 1 off, application specific, defense related god awful expensive stuff. The cost there is mostly high level engineering and development and of course, stroking the govt. They also used a very expensive semiconductor material, not silicone.

I guess the semis used in consumer goods are pretty basic and well established both in terms of performance and process?

I've been in a number of big fabs. It was almost all automated. Where's the labor costs?

It's not the semiconductor fab labor is what I'm saying, it's possibly labor issues elsewhere. I know the trucking industry is hurting for drivers, raw material company's may have labor issues, not sure. All I know is it isn't the south Texas semiconductor manufacturers momentary production interruption due to the weather months ago.

Now since most automakers use chips from overseas, it may be they are having issues getting them off the ships. One example someone stated was if a US port is full when a cargo ship arrives, it may bypass it and go on to another country and offload it's shipments there, then return back to try and unload in the US on the return route which could be days or even weeks.

I still think this is someone's chess move to increase prices.

 

[MoKelly]

Ford stock price increased about 3% today in a down market as they announced they would reveal an electric F-150 on Wednesday.

Electric vehicles equals greater shareholder value, even before the vehicle is even unveiled!

MoKelly

 

[Jstpssng]

Ford stock price increased about 3% today in a down market as they announced they would reveal an electric F-150 on Wednesday.

Electric vehicles equals greater shareholder value, even before the vehicle is even unveiled!

MoKelly

That's the new thing, whether we agree with it or not. Too many companies have failed after a century or more because they stuck with their old business plans and couldn't change. Sears, Roebuck and Co is just example.

 

[Hay Dude]

That's the new thing, whether we agree with it or not. Too many companies have failed after a century or more because they stuck with their old business plans and couldn't change. Sears, Roebuck and Co is just example.

You know what’s interesting about Sears? They were actually one of the first big retailers with on line shopping and ordering. I think they had a on line system, but it was a too far ahead of its time and it didn’t take off.

 

[MoKelly]

You know what’s interesting about Sears? They were actually one of the first big retailers with on line shopping and ordering. I think they had a on line system, but it was a too far ahead of its time and it didn’t take off.

Absolutely correct.

In business you need both a good idea and good management to be successful. One of two doesn’t cut it.

MoKelly

 

[Ford850]

Too far ahead of cutting edge is bleeding edge. Dangerously risky. Ford, and others, have been teasing with their electric truck promos. By the time they are produced there will be a much bigger market for them with many buyers who were once dead set against electric. Once people see the power and torque capabilities, like Ford's F150 pulling that train in near silence, they start thinking electric might not be so bad.
And at the same time, the truck companies are building gas and diesel engines that are bigger than ever. They are covering every inch of market share capabilities.

 

[Hay Dude]

Too far ahead of cutting edge is bleeding edge. Dangerously risky. Ford, and others, have been teasing with their electric truck promos. By the time they are produced there will be a much bigger market for them with many buyers who were once dead set against electric. Once people see the power and torque capabilities, like Ford's F150 pulling that train in near silence, they start thinking electric might not be so bad.
And at the same time, the truck companies are building gas and diesel engines that are bigger than ever. They are covering every inch of market share capabilities.

Very true about the capability of electric, but they won’t tell you much about the downside of EVs that needs to be addressed. I am a perfect candidate for a HD electric truck (I need huge towing capacity, but run mostly short trips).
I wouldn’t expect gas and Diesel engine manufacturers to sit around and watch their products legacy go into the dust bin of history without a fight, either.
They will be upping their game tremendously before the war between IC and EV is settled.
I just wish they wouldn’t force it on us. Let capitalism decide the winner, not subsidies.

 

[Frankenkubota]

Absolutely correct.

In business you need both a good idea and good management to be successful. One of two doesn’t cut it.

MoKelly

Your comment makes me think about the american auto industry. I was a union employee in that world as were many of my relatives. Many more were in management.

In the 70s we were making some of the worst cars ever, I was there! I remember hearing how the american worker can't compete.

Fast fwd and you have the foreign companies making some of the best cars in the world, right here in the good old USA. At one point the BMW plant in SC was making their highest quality cars, compared to all the rest of their plants...including German!

The unions were a huge problem but in the end, IMHO, that's a shortcoming in management.

 

[Ford850]

Very true about the capability of electric, but they won’t tell you much about the downside of EVs that needs to be addressed. I am a perfect candidate for a HD electric truck (I need huge towing capacity, but run mostly short trips).
I wouldn’t expect gas and Diesel engine manufacturers to sit around and watch their products legacy go into the dust bin of history without a fight, either.
They will be upping their game tremendously before the war between IC and EV is settled.
I just wish they wouldn’t force it on us. Let capitalism decide the winner, not subsidies.

I agree about leaving it up to us to decide. Choices are good, and I think the competition makes for better products all around. Win-win for us as long as we have the choice.

 

[Hay Dude]

We have to keep reminding ourselves that power plants will belch more CO2 or whatever the gov classifies as a “pollutant” for every car that is plugged in for recharge. There’s no free lunch.
The car ads for EVs are very disingenuous about this. They assume a lot of ignorance along with a good dose of virtue signaling.
Just tell the truth- plug you EV in and the power plant demand/pollution increases
Like I said, I would buy a well proven electric truck for the torque and traction with little hesitation. Driving distance (range) is of little consequence to me.

 

[5030]

Too old to be concerned anyway.

 

[Hay Dude]

Too old to be concerned anyway.

Yeah....screw anyone younger than you, right? Seriously?!

 

[5030]

Yeah....screw anyone younger than you, right? Seriously?!

Didn't say that at all. Said, I'm too old to be concerned about electric powered vehicles and tractors..

IOW, don't want one, don't need one and I'll be 'Soylent Green' by the time they become mainstream, if they ever do.

Not something I'm at all concerned with.

 

[Username Taken]

Your comment makes me think about the american auto industry. I was a union employee in that world as were many of my relatives. Many more were in management.

In the 70s we were making some of the worst cars ever, I was there! I remember hearing how the american worker can't compete.

Fast fwd and you have the foreign companies making some of the best cars in the world, right here in the good old USA. At one point the BMW plant in SC was making their highest quality cars, compared to all the rest of their plants...including German!

The unions were a huge problem but in the end, IMHO, that's a shortcoming in management.

No. It was the Unions. Unions have out-lived their usefulness. They are no longer necessary.

Except for minor employee communication purposes, they are completely and utterly useless beyond description.

In their day, they were saviors. Today, they are destructive and divisive. They don't even care about the people they're supposed to represent. They care only about the Union Executives. The Workers? An incovenience.

 

[Username Taken]

Didn't say that at all. Said, I'm too old to be concerned about electric powered vehicles and tractors..

IOW, don't want one, don't need one and I'll be 'Soylent Green' by the time they become mainstream, if they ever do.

Not something I'm at all concerned with.

I could see them in big Inner Cities. There would have to a support structure set up for them. Charging Stations at every paid parking spot (paid with a credit card). Refuse to allow Internal Combustion Engines except for deliveries, all taxi's and Ubers in the City would be required be electric. A thousand other things to work out but.......

I could see it in the big Inner Cities.

The problem is, and I hope I'm not under-stating this -- Big American Cities are run by the stupidest, most corrupt, lying, thieving criminals to ever exist on the Planet Earth. With Miami being a possible exception. Other than that, I'm being as nice as about it as I can.

 

[PuffyC]

Your comment makes me think about the american auto industry. I was a union employee in that world as were many of my relatives. Many more were in management.

In the 70s we were making some of the worst cars ever, I was there! I remember hearing how the american worker can't compete.

Fast fwd and you have the foreign companies making some of the best cars in the world, right here in the good old USA. At one point the BMW plant in SC was making their highest quality cars, compared to all the rest of their plants...including German!

The unions were a huge problem but in the end, IMHO, that's a shortcoming in management.

I remember that too. Domestic auto makers were putting out complete garbage and the bean counters all wanted to blame it on the assembly line workers. Most at the time knew it was BS but I still remember having discussions about it with people who bought the lie. It's funny how when things go well they want to credit their fine managerial and engineering skills but when things go bad they're always quick to blame someone else. It also makes me wonder what kind of autos we'd have today if the Japanese never forced their hand.

 

[coobie]

Yeah....screw anyone younger than you, right? Seriously?!

He is always in it for himself "BLOWHARD RINGS A BELL"I bet a real treat to know or be around as a friend or relative ..