Frying Pan Into the Fire -- Chip Shortage

[Weather Man]

Mazda Motor halts operations for two days at Hiroshima and Hofu on supply chain disruption​

MZDAY +3.11%Mar. 24, 2022 10:48 AM ET

• Mazda Motor (MZDAY +2.3%) stated Thursday that it would suspend automobile production at its two domestic factories in Japan for 2 days in April due to parts supply challenges.
• That will see the halt from April 4 to April 5 at Mazda's plants in Hiroshima and Hofu.
• The Japanese automaker said that a rise in China's COVID-19 cases were among factors expected to cause problems in the supply of components.
• Last week, European Union's new passenger data showed car sales down 6.7% in February.

 

[Fat Boss]

Now that we're 1/4 of the way through 2022, I am not only sure we're not going to get out of the chip mess this year- but I'm now thinking we might not in 2023 either.

 

[Weather Man]

Now that we're 1/4 of the way through 2022, I am not only sure we're not going to get out of the chip mess this year- but I'm now thinking we might not in 2023 either.

Yeah, and by that time you're already bumping into some probable ICE bans in the EU.

 

[Weather Man]

For goodness sakes.

General Motors to halt production at Indiana truck plant for two weeks amid chip shortage​

GM -0.83%Now!

• The Detroit automaker General Motors (GM -0.8%) is shutting down its pickup truck factory in Ft. Wayne, Indiana, for two weeks next, starting April 4 as it has run short of semiconductor chip.
• Supply chain issues continues to weigh on auto industry for more than a year after a global chip shortage first emerged in late 2020.
• Chip supplies have improved during the first three months of this year vs. year ago, GM said, improving production and deliveries in the first quarter.
• Management comment: "There is still uncertainty and unpredictability in the semiconductor supply base, and we are actively working with our suppliers to mitigate potential issues moving forward,"
• The Ft. Wayne plant has been running on three shifts per day making Chevrolet Silverados and GMC Sierra light duty pickups. The plant employs more than 4,000 blue collar workers.

 

[Weather Man]

Went to the local John Deere dealer checking on a new X734 mower. 6 to 7 month wait from purchase. They did have plenty of the smaller carbureted mowers in stock.

 

[Weather Man]

Ford, GM to halt production at two Michigan plants in latest supply chain snafus​

Mar. 31, 2022 8:48 PM ETFord Motor Company (F), GMBy: Carl Surran, SA News Editor5 Comments

gopixa/iStock Editorial via Getty Images

Supply shortages will force both Ford (NYSE:F) and General Motors (NYSE:GM) to halt production at some plants next week, the Detroit News reports.
Ford said Thursday that the ongoing global semiconductor shortage would force it to pause production for the week starting April 4 at the Flat Rock Assembly Plant in Michigan, while the rest of the company's North American plants will continue to run.
The Flat Rock facility started producing the 2022 Ford Mustang in January, but production has been halted multiple times this year because of supply chain constraints.
GM said production at its Lansing Grand River plant, where workers build the Cadillac CT4, Cadillac CT5 and Chevrolet Camaro, will be down next week because of unspecified supply issues not related to the global semiconductor shortfall.
GM previously said the semiconductor shortage would cause a production halt of its Chevrolet Silverado 1500 and GMC Sierra 1500 at the Fort Wayne Assembly plant in Indiana for two weeks starting April 4.

 

[Weather Man]

Had to order the John Deere mower I wanted, simply none in stock and John Deere only shipping sold dealer orders.

 

[MFE]

I met with corporate reps from a major automaker yesterday, and one of them said they'd been in a meeting with planners who had identified and were trying to work around 70 separate disruptions in their global manufacturing supply chains.

 

[Stanley]

That's crazy.
It's starting to trickle down to the chemical plants too. Our newest long lead time item is o-rings of all things.

 

[tones_RS3]

That's crazy.
It's starting to trickle down to the chemical plants too. Our newest long lead time item is o-rings of all things.

Yeah, everything is all screwed up.
We're seeing it in the Print industry as well. Paper/envelope shortages.
Absolutely terrible. Who would have ever thought that we would see this in America?!?!

 

[GOTSVT?]

I’m getting my arse kicked trying to source stainless steel that we use tons of. Crazy to be in this situation.

 

[Lambeau]

I met with corporate reps from a major automaker yesterday, and one of them said they'd been in a meeting with planners who had identified and were trying to work around 70 separate disruptions in their global manufacturing supply chains.

Think any of those 70 disruptions are deliberate?

 

[Weather Man]

Think any of those 70 disruptions are deliberate?

Chinese hard covid lock downs rippling everywhere.

 

[Lambeau]

Chinese hard covid lock downs rippling everywhere.

And your point regarding my question to MFE is?

 

[Weather Man]

And your point regarding my question to MFE is?

Deliberate only in the sense that China is disruption supply chains because of covid. Ulterior Chinese motives?; hard to see the benefit to China.

 

[SSSSSSSSSSSSVT]

Deliberate only in the sense that China is disruption supply chains because of covid. Ulterior Chinese motives?; hard to see the benefit to China.

Yes, because of COVID. Not deliberate at all….

 

[Weather Man]

Yes, because of COVID. Not deliberate at all….

Well, I'm more inclined to believe it was the usual Chinese adherence to quality control and safety rules versus deliberate release. There certainly is plenty of evidence for that point of view in China.

 

[CobraBob]

Starting in May, Ford apparently is planning to stop installing navigation systems in their Broncos due to the chip shortage. It's uncertain it they're dropping navigation or leaving open the possibility of having dealerships install the navigation option at a later date when the parts are available, which could go into 2023.

 

[Lambeau]

Deliberate only in the sense that China is disruption supply chains because of covid. Ulterior Chinese motives?; hard to see the benefit to China.

Benefit to chyna?

You missed it. Chyna's playing the long game.

 

[Weather Man]

Benefit to chyna?

You missed it. Chyna's playing the long game.

Hard to see how encouraging companies to move supply chains from China is the long game, and they are moving. Security of supply is outweighing cheapest supplier, which isn't cheap, if they can't supply.