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Chip shortage leads carmaker Opel to shut German plant until 2022

reuters.com

221–230 of 495 posts

Re: Chip shortage leads carmaker Opel to shut German plant until 2022

#221
post #71
post #21

What I'll never understand is why carmakers don't take advantage of this situation and address a market that's been literally BEGGING for decades for a new product: A simple, basic car, with the ONLY electronic control being for: - Valve timing - Fuel injection - Oxygen and throttle - Emissions There's a market for budget and privacy oriented customers that all carmakers seem to have ignored for two decades now. Give…

First of all this "simple" car may end up being more expensive. Doing a lot of the things the old mechanical way requires a lot of labor and labor is expensive nowadays. Having to use turning wires and vacuum tubes for instrument clusters, and a bunch of pull wires for controls... Not only would that be expensive it would require skills and equipment long lost today. Oh and the wind shield wipers -- it is possible to…

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Re: Chip shortage leads carmaker Opel to shut German plant until 2022

#222
post #42

Earlier quoted context omitted.

Auto makers should just buy back leased cars from dealerships and harvest the chips. These are cars after all, so the chipsets have probably been the same underpowered crapware for the last ten years.

That doesn't work in practice; there's a legal difference between a part on a new vehicle that was DIT (Damaged In Transit) and one pulled out of a lease.

This is the auto industry we are talking about. If they want something that will help them be more competitive or float them in hard times they go to congress and get it.

Re: Chip shortage leads carmaker Opel to shut German plant until 2022

#223
post #21

What I'll never understand is why carmakers don't take advantage of this situation and address a market that's been literally BEGGING for decades for a new product: A simple, basic car, with the ONLY electronic control being for: - Valve timing - Fuel injection - Oxygen and throttle - Emissions There's a market for budget and privacy oriented customers that all carmakers seem to have ignored for two decades now. Give…

I have a lot of thoughts about this comment, but here are my two cents.

> There's a market for budget and privacy oriented customers that all carmakers seem to have ignored for two decades now. Give us a simple car with no GPS navigation, ass warmers, tire pressure sensors, telemetry, backup cameras, USB chargers, proximity detectors, traction control, keyless entry, remote climate control, etc.

I feel like you're vastly overestimating the market size. Most non-tech people don't care about their privacy on their phone, their laptop or their TV. Most people don‘t even know that their car actually has the hardware to track them, why would they care about their privacy in their car?

> I understand the re-engineering is a cost. But when you're simply removing existing features, this should be a fairly negligible one.

I would not expect that to be fairly simple re-engineering. Many assistive technologies are mandatory in new vehicles (at least in some regions like the EU) such as automatic emergency calls, etc. Those are not standalone systems but they have many dependencies on sensors, etc. With the supply chains of traditional automakers, chances are the components necessary to integrate one mandatory system aren't even from the same supplier. This makes cherry picking features extremely hard if not impossible.

> these carmakers have decided to throw up their hands and shut down production or pile up unfinished inventory waiting on chips. It makes precisely zero sense.

I don't think it's coincidental that they decide to shut down a plant in Germany (besides the fact that Opel is originally German). In Germany we have something called "Kurzarbeitergeld" which is a support companies in trouble can receive in certain situations to support their employees. Employees continue to work a fraction of the time (50% Kurzarbeit basically means you only work half of your weekly hours, 100% Kurarbeit means you don't work at all for a certain period). The money the employees receive is largely paid for by the Government (the taxpayer).

Usually Kurarbeit comes with a very strict set of rules, but thanks to covid those rules have been loosened a bit and especially carmakers (VW and BMW) take advantage of it (BMW for example sent many of their workers into Kurzarbeit but decided to pay billions of dividends to the Quandt family). So I suspect it was cheapest to shut down the Germany plant.

Re: Chip shortage leads carmaker Opel to shut German plant until 2022

#224

Earlier quoted context omitted.

Scalpers are not the problem as they seem, they are like market makers for stock exchanges. They buy low and sell high, always. The factory could tell you that they're currently out of stock for the next few months, but a scalper will never be out of stock, because their prices rises so high that only very few desperate companies would buy. The point is, it's better to have the option to buy something at a high price…

Negative. Like scalping everywhere, they're middlemen who contribute nothing to society, and make it more difficult for people who do.

Well, they provide value. They make it possible for people/entities who needs things the most to actually get them instead of those who happen to be first in line or in lucky position to get access to supply.

Re: Chip shortage leads carmaker Opel to shut German plant until 2022

#225
post #155

Earlier quoted context omitted.

Scalpers are not the problem as they seem, they are like market makers for stock exchanges. They buy low and sell high, always. The factory could tell you that they're currently out of stock for the next few months, but a scalper will never be out of stock, because their prices rises so high that only very few desperate companies would buy. The point is, it's better to have the option to buy something at a high price…

They can only do that by holding onto to supply which makes shortages worse. The same thing happens with ticket scalping at concerts, the difference is it’s more obvious that a sold out concert has empty seats vs supply sitting in a warehouse on the off chance it can be sold at 100x prices.

Empty seats mean someone screwed up but how can you tell that a group of empty seats is unused due to a scalper, versus some group of people who couldn’t make it?

When speculators don’t screw up, one fewer part being sold now means one more part that can be bought later. Delaying sales of some parts makes the shortage worse earlier and better later. Keeping inventory is a service to people who didn’t plan ahead.

Sometimes people do screw up, buying things that are never used, so they lose money due to the waste. But you can’t assume they’re all screwups.

Re: Chip shortage leads carmaker Opel to shut German plant until 2022

#226
post #114

One important part of the chip shortage is the massive amount of price gouging going on. Every IC is being bought up by new 3rd party distributors to scalp to desperate electronics manufacturers. Take a look at this chip we are just now crossing as an example, click on 'Non-authorized stocking distributors': https://octopart.com/tps2052bdgnr-texas+instruments-699312?r... Win Source has a bunch, but you will pay 6x th…

General electronics yes, but automotive ICs are not in free sales and can't be stocked by 3rd parties. Also giants like apple, amazon,... buy directly from the manufacturers with orders being made often a year in advance.

This shortage is so big that the 3rd party scalpers are insignificant contributor to it.

Re: Chip shortage leads carmaker Opel to shut German plant until 2022

#227
post #146
post #42

Earlier quoted context omitted.

Auto makers should just buy back leased cars from dealerships and harvest the chips. These are cars after all, so the chipsets have probably been the same underpowered crapware for the last ten years.

Would this actually ever make any sense? Not counting totalled vehicles. There really isn't so much profit in new cars price that it pays for used car fully. Unless that used car is really heavily used. Which then leads to questions of how much lifetime left the parts have.

They could lobby and get another cash for clunkers sort of arrangement from the federal government to incentivize dealers turning over leases rather than having them on the lot, and having the cost of getting back these cars publicly subsidized by the government. The run for used car supply right now is entirely due to new car supply being so strained. Pushing that demand back to new cars rather than used cars puts the profits back into the automakers rather than dealerships, and guess who swings with more weight in Washington. Not Joe Shmoe Chevrolet from Anytown USA.

Re: Chip shortage leads carmaker Opel to shut German plant until 2022

#228
post #114

One important part of the chip shortage is the massive amount of price gouging going on. Every IC is being bought up by new 3rd party distributors to scalp to desperate electronics manufacturers. Take a look at this chip we are just now crossing as an example, click on 'Non-authorized stocking distributors': https://octopart.com/tps2052bdgnr-texas+instruments-699312?r... Win Source has a bunch, but you will pay 6x th…

What's the difference between scalpers and Digikey hypothetically raising their prices sixfold?

Re: Chip shortage leads carmaker Opel to shut German plant until 2022

#229
post #152

Earlier quoted context omitted.

What's the point of keyless entry? Mine comes with key, and yhe auxiliary immobilizer which will not let it drive without radio tag or typing in PIN.

Ease of use. I would love if I could just leave key in my pocket and not worry about opening doors or putting it in ignition. I could even connect it to my keychain.

[deleted]

Re: Chip shortage leads carmaker Opel to shut German plant until 2022

#230

Earlier quoted context omitted.

Scalpers are not the problem as they seem, they are like market makers for stock exchanges. They buy low and sell high, always. The factory could tell you that they're currently out of stock for the next few months, but a scalper will never be out of stock, because their prices rises so high that only very few desperate companies would buy. The point is, it's better to have the option to buy something at a high price…

Negative. Like scalping everywhere, they're middlemen who contribute nothing to society, and make it more difficult for people who do.

They provide short-term, non-committal inventories and buffers to a supply chain that doesn't have them, since it runs on long-term contracts. In some ways, they're capitalizing on the failures of just-in-time inventory dogma
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