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Chip shortage: Toyota to cut global production by 40%

bbc.com

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Re: Chip shortage: Toyota to cut global production by 40%

#281

Post by alistairSH »

yourusername wrote: post #210
gonzo41 wrote: post #116

Earlier quoted context omitted.

Spend 5K on a really nice commuter electric bicycle. You'll be doing a solid for the Environment and you'll have an EV that makes you fitter.

High end bike parts are also in short supply. Popular electric bikes also have months long waiting lists.

FWIW, my local bike shop has a pile of electric-assist commuter/townie bikes ready for riders. Supply chain for bikes is definitely broken right now, but they're out there - you just have to look and wait and look some more.

Re: Chip shortage: Toyota to cut global production by 40%

#282

Post by itsoktocry »

rcMgD2BwE72F wrote: post #23

On one hand, Toyota buys so many chips that their supplier will probably prioritize their orders. On the other hand, Tesla is tiny compared to Toyota but is probably more flexible and can adapt faster, e.g by using alt chips with new firmware and by using fewer chips per vehicles (to be proven, but we know Model Y has half the number of ECUs of Mach E / ID.4 for instance). Also, without dealers, Tesla could better ma…

>to push customers towards high margin vehicles

Wait, isn't this what people tell us is wrong with dealerships, and why the Tesla method is superior?

Re: Chip shortage: Toyota to cut global production by 40%

#283

Post by eldaisfish »

5e92cb50239222b wrote: post #256
eldaisfish wrote: post #247

Earlier quoted context omitted.

Consider for a moment the people outside the developed world whose lives are greatly improved by cars. Scarcity drives prices up putting things out of their reach.

Have you even been to the developing world? We mostly drive old junkers that were discarded by Americans and Europeans after 15 years of use for breaking and polluting too much.

this comment is a textbook example of how out of touch many here are.

The developing world also makes cars. India - to name just one - is among the largest exporters of vehicles to several countries in Africa.

No, people in the developing world do not drive hand-me-downs from the West.

Re: Chip shortage: Toyota to cut global production by 40%

#284

Post by Jtsummers »

throwaway0a5e wrote: post #235
hef19898 wrote: post #217

Earlier quoted context omitted.

You know a function called Supply Chain Management exists, right?

It should go without saying that there are nuances in implementation. What I'm describing here is a fundamental tradeoff of JIT systems. If you get the wrong thing delivered it throws a bigger wrench into things because you don't have the buffer. Can you make this rare enough that the amortized cost is low enough to make JIT overall cheaper? Of course, that's why everyone does JIT.

> If you get the wrong thing delivered it throws a bigger wrench into things because you don't have the buffer.

JIT, in Lean, does not mean no buffer, it means as little of a buffer as you can get away with. If you have issues with delivery like this on a regular basis, then you'd increase the buffer size (at least temporarily) and also take your suppliers to task for sending the wrong thing over and over.

The buffer size should be increased if any upstream supply issues exist that regularly cause a shortage. Ideally, you should address those issues themselves, but if you have and they can't (or won't) be fixed then you increase your buffer to accommodate reality. However, the shortage is itself a signal. Too high an inventory permits supply issues to persist without being addressed for a long time because you never get the signal about the issues with them (the downstream production slowdowns).

Re: Chip shortage: Toyota to cut global production by 40%

#285

Post by eldaisfish »

tlocke wrote: post #265
eldaisfish wrote: post #247

Earlier quoted context omitted.

Consider for a moment the people outside the developed world whose lives are greatly improved by cars. Scarcity drives prices up putting things out of their reach.

Cars tend to diminish quality of life. Local, walkable and cyclable neighbourhoods on the other hand enable people to flourish. When people have to travel by vehicle, trains and trams are superior to cars.

how do you propose people in rural Africa transport their goods to markets? Cycle and trams? Perhaps electric buses?

Re: Chip shortage: Toyota to cut global production by 40%

#286

Post by ceejayoz »

PaywallBuster wrote: post #261
only_as_i_fall wrote: post #229

Earlier quoted context omitted.

Then what's the solution? Seems like the government is the only entity that can intervene if market forces are counter to supply chain resilience. This is partially the justification for agricultural subsidies in the US, so clearly there is precedent.

Apple approach, invest in your supply chain Extra points by diversifying from China/Taiwan In direct opposition, Auto makers approach of minimizing inventory and producing "just-in-time" caused them to be vulnerable to supply chain or big market shifts

The article notes that Toyota avoided "just-in-time" supply for chips, and has benefited for a while from this. Their stockpile just ran out.

> New cars often include dozens of microchips but Toyota benefited from having built a larger stockpile of chips - also called semiconductors - as part of a revamp to its business continuity plan, developed in the wake of the Fukushima earthquake and tsunami a decade ago.

Re: Chip shortage: Toyota to cut global production by 40%

#287

Post by MagicWishMonkey »

dimitrios1 wrote: post #224
throwawaygh wrote: post #220

Earlier quoted context omitted.

A negative feedback loop in semiconductor supply seems like a situation where a government should just step in manage the market a bit.

The solution to a market inefficiency isn't to involve a more inefficient entity.

We're in this mess due to our never ending quest for more "efficiency"

The government needs to recognize the fact that semiconductors are essential to national security and ensure we have the capability to produce our own.

Re: Chip shortage: Toyota to cut global production by 40%

#288

Post by itsoktocry »

mnadkvlb wrote: post #95

Can someone explain, why this is not reported as in what inflation looks like ? when Supply cant meet demand we get higher prices, what am i missing here ?

>Can someone explain, why this is not reported as in what inflation looks like ?

What do you mean "this is not reported"? Are you actually looking at the BLS inflation reports?

The fact is, semi-conductor price increases make up a tiny proportion of the average person's cost of living.

Re: Chip shortage: Toyota to cut global production by 40%

#289

Post by OldHand2018 »

hef19898 wrote: post #201
ghaff wrote: post #178

Earlier quoted context omitted.

I think that's true. What most of us care about in cars is that they work when we want to drive them someplace right now , won't leave us stuck on the side of the road, and don't have prohibitive (time or money) planned maintenance. What's probably true is that older cars that aren't rusted out can probably be kept running by people with the appropriate mechanical skills even in the absence of proper factory/3rd part…

True, as an owner of a car from 1982 I agree. Requires a lot more preventive maintenance, e.g. oil changes every six months or 5-6k km, but runs perfectly fine when properly maintained. Also, I cam probably fix most issues with tools carried on board on the side of road. Enough to get to a proper workshop at least, I converted it to 2WD after killing a diff and drove for 200 km that way. If you cannot do that yoursel…

Depending on the brand/model, the odds are pretty overwhelming that your car from 1982 has 5 or more chips in it.

The chip-ification of cars has been going on for a really, really long time.

Re: Chip shortage: Toyota to cut global production by 40%

#290

Post by MagicWishMonkey »

ramesh31 wrote: post #226
dimitrios1 wrote: post #224

Earlier quoted context omitted.

The solution to a market inefficiency isn't to involve a more inefficient entity.

Ah yes, the Herbert Hoover approach.

I wonder how many of these people rant about how bad the government is while using GPS to navigate their way to work on government funded roadways.
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