GM and others stop production

[lugbolt]

Read on the news that GM has stopped production because they can't get some computer chip. The article said that the chip was sourced from Asia.

So this begs the question. Or several. Is Kubota affected? Two, how long is it gonna take to realize that we are dependent on China, and what long term implications are we looking at?

Interesting times.

 

[Fordtech86]

Read on the news that GM has stopped production because they can't get some computer chip. The article said that the chip was sourced from Asia.

So this begs the question. Or several. Is Kubota affected? Two, how long is it gonna take to realize that we are dependent on China, and what long term implications are we looking at?

Interesting times.

Not to be rude, but how old is the news you are watching?

This has been going on for months.

Thousands of new Ford trucks are at Kentucky Speedway and it has nothing to do with racing

The trucks were made at Ford plant in Kentucky and are ready to be sold, but lack semiconductor chips.

www.whas11.com

Just one random article from May. We haven’t been seeing much new inventory since early this year.

 

[mcfarmall]

Microchips, bearings, power transmission components, injection molded parts, if it WAS made in the U.S., it's most likely sourced from overseas.

 

[DustyRusty]

The worlds largest chip manufacturer is located in Taiwan. What will we do, if and when China invades Taiwan, and claims it to belong to China. Most people don't realize that when the Chinese communist took over China, that the government of China went to Taiwan, and ousted the government of Taiwan, and took over the island. That history has probably been expunged from the history books, because it isn't politically correct to tell the truth. China believes that every Chinese speaking country should be part of China, and in the next decade I am willing to bet that they will start to take these small nations by force if necessary. The US or for that matter, just about every country in the world is dependent on China for just about everything. We are not in a position to get into another world war and China knows that. If China gets a hold of the Taiwan chip manufacturing business, they will dictate to the rest of the world.

 

[Oil pan 4]

Taiwan, is the one true china.
Yup I'm keeping my 40+ year old L185DTT.

 

[Bmyers]

Besides just being a China issue, there are more to it than that. Below is a video that gives brief overview of what is going on with the chip shortage.

 

[Bmyers]

Trying to find the silver lining, the chip crises has led to two companies building plants in the US.

Intel, TSMC are building water-dependent chip plants in Arizona (cnbc.com)

A third company is expanding in the US GlobalFoundries to build new chip plant in Upstate New York | Vermont Business Magazine (vermontbiz.com)

 

[lugbolt]

I've heard some say "well I'll drive an old car with a carburetor-no chips needed". Well thats fine but where you gonna get gas to feed it? Takes electronics to run the pumps, to get gas TO the pumps, to make it, make the electricity that makes the pumps work, etc. So when it comes down to having no chips and the stuff hits the fan, we're out of luck unless you make your own-which I can (but not gas).

Sure the electronics are nice and I use them often, recreational and professionally. BUT-they come at a cost which is not necessarily all a monetary cost.

There really is no reason that we Americans can't make our own. However, there are plenty of reasons that we don't. Remember 2016? The candidate that won the 16 election said many times that the USA was going to bring manufacturing back to the USA. So now that we're just starting to realize how dependent we are on Asian manufacturing, it does show the importance of making our own stuff. If we were to go to war with China or Taiwan, we'd be screwed and I think everyone knows it. We wouldn't have shoes, comfusers I mean computers, phones, basically everything just look around you, good chance that most of what you see is made in Asia somewhere.

 

[Yooper]

Trying to find the silver lining, the chip crises has led to two companies building plants in the US.

Intel, TSMC are building water-dependent chip plants in Arizona (cnbc.com)

A third company is expanding in the US GlobalFoundries to build new chip plant in Upstate New York | Vermont Business Magazine (vermontbiz.com)

Why would you build a water dependent factory in Arizona?

 

[BruceP]

A third company is expanding in the US GlobalFoundries to build new chip plant in Upstate New York | Vermont Business Magazine (vermontbiz.com)

I worked 40 years at that "chip plant" in Vermont when it was IBM.... recently purchased by GlobalFoundaries. Among many other things, we used to manufacture the GPS chips for every cellular device on the planet.

 

[BruceP]

Why would you build a water dependent factory in Arizona?

I worked in the chip-manufacturing industy for 40 years.... The process used many dangerous and deadly chemicals to manufacture the chips. (If you smell it.... you are dead, If it gets on your skin... your BONES dissolve ==> https://ehs.unc.edu/chemical/hfa/ )

I may be wrong here but "water dependent" may be referring to a process which is not dependent on caustic chemicals to produce the chips.

 

[Bmyers]

Why would you build a water dependent factory in Arizona?

According to the article, once they have the water they need, they can recycle and use the water over and over. In addition, the article stated that they picked the location based on the fact that it is least impacted by weather conditions or severe natural events.

 

[random]

Not to be rude, but how old is the news you are watching?

This has been going on for months.

Just one random article from May. We haven’t been seeing much new inventory since early this year.

2 days old: https://www.msn.com/en-us/money/com...mic-related-chip-shortage-overseas/ar-AAO1NLt

Specifically GM halting production. The chip shortage has been going on for awhile, and doesn't look to be getting any better for some time. ANYTHING that uses that sort of electronics will be affected.

 

[random]

I worked in the chip-manufacturing industy for 40 years.... The process used many dangerous and deadly chemicals to manufacture the chips. (If you smell it.... you are dead, If it gets on your skin... your BONES dissolve ==> https://ehs.unc.edu/chemical/hfa/ )

Sounds like pretty nasty stuff

 

[Poohbear]

My BiL hauls hazardous liquids for Intell. Transports lots of bad stuff between Portland and a plant somewhere in Az. So bad Intell pays for his truck to pull off road if raining/snow. . No chains etc.
I wonder why a company like TI hasn't jumped into this market. I used to do a lot of telephone work in the Dallas plants & they have facilities all across the USA & global.

 

[Oil pan 4]

There's a nuclear power plant in the middle of AZ, been there a long time so I think they have the water thing figured out.

 

[lugbolt]

went by a few car lots on my 1000 mile trip last week. Many car lots are out of new cars; rather selling (or attempting to sell) used cars, for the same cost as new cars. So my dad and I were talking about this deal and we agreed that if nothing changes anytime soon, I think people are finally going to realize that having that nice new car every so often is over-rated. The prices of used cars is ridiculous. As someone who works at a dealer (though not cars) I saw this coming, and I purchased in February 2021 a used vehicle, for $20K. I didn't need it, but I wanted it and had the money. So I get a call last week while I was driving it on vacation, from the dealer I purchased from that wanted to buy it back for $4200 more than I paid for it. Now I know they gotta make money, so that offer stands to improve, whether it be at that dealer or elsewhere. So with that, out of my own curiousity I put the VIN and all the stuff into a popular website and got an offer today for $28,800. Now, if you're smart, you'll sell. Maybe I'm not smart. I have other vehicles to drive and the extra $8800 would come in real handy.

Crazy!

But the flip side, once chips are available and cars start flooding the market, the used market will likely TANK big time.

 

[Daren Todd]

went by a few car lots on my 1000 mile trip last week. Many car lots are out of new cars; rather selling (or attempting to sell) used cars, for the same cost as new cars. So my dad and I were talking about this deal and we agreed that if nothing changes anytime soon, I think people are finally going to realize that having that nice new car every so often is over-rated. The prices of used cars is ridiculous. As someone who works at a dealer (though not cars) I saw this coming, and I purchased in February 2021 a used vehicle, for $20K. I didn't need it, but I wanted it and had the money. So I get a call last week while I was driving it on vacation, from the dealer I purchased from that wanted to buy it back for $4200 more than I paid for it. Now I know they gotta make money, so that offer stands to improve, whether it be at that dealer or elsewhere. So with that, out of my own curiousity I put the VIN and all the stuff into a popular website and got an offer today for $28,800. Now, if you're smart, you'll sell. Maybe I'm not smart. I have other vehicles to drive and the extra $8800 would come in real handy.

Crazy!

But the flip side, once chips are available and cars start flooding the market, the used market will likely TANK big time.

I bought my Sierra in February as well. Stopped by the local GMC dealer (in town) to check on where the title was or get a paper tag after 30 days. They offered me $8k over what I paid to buy it back.

I said no thanks, I'll keep the truck!!

 

[lugbolt]

Market manipulation. Something that popped into my pea brain while drifting down the river this morning at dark thirty waiting for enough daylight to see the rocks I was fixing to hit.

What if. I'm not normally like this but what if our government were to make a deal with a company or industry that supplies computer chips for vehicles; such that reducing output would make the price of a gas car much higher, harder to get? Could it be that we're being "prepared" for being "forced" to buy an EV of some sort?

Again I'm not normally a conspiracy expert, but it was a weird thought that came up. Makes one wonder doesn't it?

I know it also affects EV's. I know it also affects TONS of industries not just cars (affects off-road utv's too--which I am a part of). It also affects Kubota (keeping it kubota related). Interesting. Our president says he's going to visit with whomever with regard to this subject. Wonder what the whole conversation is about? Will we ever know?

 

[GreensvilleJay]

1st, don't feel bad for any GM employee being laid off. My cousin worked in the engine casting plant in St Kitts. LOVED being laid off...got 80%+- of his wages ,full benefits and TIME to do 'odd jobs',so he made MORE..
2nd, LB's right... a manipulation.... 'machine's make machines', not a lot of humans involved in chip making,essentially 'head office bean counters' have figured out a way to make BILLIONS, easier...
3rd, I can buy 1,000s of 'computer chips' right now, no problem and they could easily run a car,truck or plane. But, 'they'ed' have to redesign,something they don't want to do
4th, It's never been reported WHICH 'computer chips' they can't get. If it's the ECU( Engine Control Unit) , then just HOW are they getting the cars from the assembly line to the parking lots ? Two guys pushing, a 3rd trying to steer a nonrunner ?? NEVER ever see that on the news..... I suspect the cars are drivable,just the 'radio' don't work...but in the smoke and mirrors, no one is saying that....