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Who ate the Chips?

If I was a stakeholder in ANY company that has to shut down production due to the chip shortage I would hold the executive staff accountable. From what I read we are not selling that many more cars and trucks as before the pandemic so where are these chips going? Shortages for PCs and products we needed to work from home I understand, unforeseen demand. But if anything we drove less for two years which should mean car/truck demand would decrease or remain stable. And now with inflation and gas prices jumping are we really selling more cars today than 2 years ago?

Cars sold in US 1951-2021.jpg
 
We are in the third year of Covid-19 pandemic. I'm wondering if GM paid enough to procure parts and materials to keep their production lines running. Or they feel it has reached a point that more cars they produce will actually decrease their overall profit?
 
1. Apple is going to cut production of iPhones and AirPods. According to Nikkei, the tech giant will make fewer AirPods and iPhone SEs next quarter, in anticipation of lower demand brought on by inflation and the crisis in Ukraine. Apple told suppliers it intends to reduce production orders for its iPhone SE model by about 20% from what it had previously planned — a cut of about 2 to 3 million units — in the next quarter. It has also reduced orders for its AirPods by more than 10 million units in 2022, Nikkei reported.

Seriously who ate the chips?
 
There’s a shortage of chips for cars because 20% more demand exceeded hard limits to supply and undesirable, very expensive countermeasures. You could summarize this as saying they don’t know how all the pieces of making a car fit together.
There’s a shortage of houses because 14 years ago banks—nearly ended the world, construction collapsed, and apparently it takes more than 14 years for builders and land developers to recover.
There a shortage of oil and gas and downstream products like fertilizer in Europe because politicians perceive oil and gas as evil, don’t want to be that, and so green is the only option. You could summarize this as saying, they don’t know where the food on their table comes from (natural gas, converted to fertilizer, converted to food).
These issues point to a larger issue, I think, a decline in the capacity of societies to preserve vital knowledge, pass it on to others, and make appropropriate corrections to preserve those businesses, way of life, and survive. It is WORRYING.
 
benb said:
There’s a shortage of chips for cars because 20% more demand exceeded hard limits to supply and undesirable, very expensive countermeasures. You could summarize this as saying they don’t know how all the pieces of making a car fit together.
There’s a shortage of houses because 14 years ago banks—nearly ended the world, construction collapsed, and apparently it takes more than 14 years for builders and land developers to recover.
There a shortage of oil and gas and downstream products like fertilizer in Europe because politicians perceive oil and gas as evil, don’t want to be that, and so green is the only option. You could summarize this as saying, they don’t know where the food on their table comes from (natural gas, converted to fertilizer, converted to food).
These issues point to a larger issue, I think, a decline in the capacity of societies to preserve vital knowledge, pass it on to others, and make appropropriate corrections to preserve those businesses, way of life, and survive. It is WORRYING.
Click to expand...
Indeed, there has been a fundamental misunderstanding about oil and gas. These will remain necessary for some time, regardless of how we power our cars (petrochemicals, plastics, fertilisers, ...).

Matters are not helped by the fact that Western leaders are almost to a man and woman technically illiterate (the only respect where China enjoys some advantage over the West in my book). It is high time that "techno" is removed from the word "technocrat".
 
benb said:
There’s a shortage of chips for cars because 20% more demand exceeded hard limits to supply and undesirable, very expensive countermeasures. You could summarize this as saying they don’t know how all the pieces of making a car fit together.
There’s a shortage of houses because 14 years ago banks—nearly ended the world, construction collapsed, and apparently it takes more than 14 years for builders and land developers to recover.
There a shortage of oil and gas and downstream products like fertilizer in Europe because politicians perceive oil and gas as evil, don’t want to be that, and so green is the only option. You could summarize this as saying, they don’t know where the food on their table comes from (natural gas, converted to fertilizer, converted to food).
These issues point to a larger issue, I think, a decline in the capacity of societies to preserve vital knowledge, pass it on to others, and make appropropriate corrections to preserve those businesses, way of life, and survive. It is WORRYING.
Click to expand...

According to that graph we are selling half the cars we did 10 years ago. I do understand that cars carry more chips now but we have been building incremental capacity for this every year. I was on an automotive call last week and was told that other materials are the automotive bottle neck versus the actual chips but I guess it is easier to say chip shortage when it is actually a supply chain problem. They actually had a bill of materials and called out "golden" parts that were blocking production. One was wire harnesses of all things. The automotive executives are going to have some explaining to do, absolutely.
 
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