How the Chip Shortage Is Forcing Auto Makers to Adapt | WSJ

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The number of semiconductors in a modern car, from the ignition to the braking system, can exceed a thousand. As the global chip shortage drags on, car makers from General Motors to Tesla find themselves forced to adjust production and rethink the entire supply chain. Illustration/Video: Sharon Shi

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34 Comments

  1. I was going to buy a new car this year but the dealer would only take $100.00 off the sticker price because of the chip shortage. Looks like I will wait a year or two!!!! I will NOT pay sticker price for any car. PERIOD!!!!! I wish it was the 70s again, NO chips in cars!!!!!

  2. I went to the dealership and manage to get a Toyota corolla 2021 out the door and man I was lucky cause they literally mentioned the chip shortages. As result there is very limited numbers of brand new cars.

  3. It’s obvious manufacturers want you to believe there is still a shortage. Because over night car prices will drop back to heavily discounted.

  4. Poorly written piece. The automakers cancelled chip orders due to the Covid shutdowns and reduction in sales. The chip makers retooled to make more consumer electronics chips and won't switch back as long as they are running at capacity; which they are. Also, consumer electronics chips are more profitable to the chip makers, so why would they want to retool back?

  5. Next up… JIT becomes Agile JIT, as JIT was shown to be a corner cutting method that cannot adjust to disruptions. Good thing employers are going to keep employees working remote so they do not need them to buy cars. Right… right?

  6. Ever see the price of a late 90s 4Runner with 300,000 miles? You don’t see a lot of 20 year old cars as much as a 4Runner. Best car on the road still to this day. Have 2 in my household. Easy to work on too. They don’t make them like that anymore.

  7. In other news, Apple announces that due to a chip shortage, it will now be possible to freely replace parts that previously required special Apple software to replace.

  8. "Just in Time" is a fancy anti American way of saying "Just from China". FYI China is in a world of hurt. 2+ months of 100 year rains/ flooding dams breaking … Mass Covid outbreak . Massive real estate collapse pending. Massive chip shortage so bad that they re de populating old scrap trash board and recycling old components as NEW.

  9. The chip shortage is due to the trade war. When Donald Trump started his trade war, he banned around 60 Chinese tech companies from doing business in the US, and those were the companies that made those chips. Since GM bought their chips from those companies, and there aren't any alternative suppliers, GM is out of luck and has to idle production.

  10. The problem with being lean. Redundancy goes out the window. But relying on China for your critical components is silly and a novice move.

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