I thought that chip supply improved but now production at the Indiana plant is temporarily closing. Is chip supply really improving?
6 replies (most recent on top)
Chip supply was improving...China Covid lockdowns are what is ki----g the industry now. With no end I'm sight.
It's not about chips. The plant in Indiana has gotten on gm's sht list for extreme amount of FMLA that is used there. If other plants need parts the company takes it from Fort Wayne And cuts their hours. They will lose a shift very soon.
Anecdotal evidence: I was in the market for a vehicle... well not anymore until this whole situation corrects itself. So - putting off buying a vehicle indefinitely and the working remotely helps me do that!
I'm old enough to remember when GM bought Hughes Aircraft. Wasn't that to have an inside edge on the chip market? That was many decades ago. It's too bad the company didn't stick with it and develop it over time.
People keep predicting the chip shortage will get better "soon", but it isn't getting better.
Car manufacturers are using their limited supply of chips to build a handful of $70,000 trucks with high profit margins, and very few cars for the middle class.
If you visit car dealerships, the lots are 80% empty, choices are limited, and prices are very high.
There are only so many people who can spend that kind of money, so customers are drying up.
The car companies are going to start hurting soon as sales fall.
Plants are being idled all across the country. It's not just a Ford, GM, or FCA Stellantis thing. Many people don't know that.
Automakers are cannibalizing their production of least profitable units, for the most profitable or quick moving.