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

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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Comment (805)

  1. If quality was more important than profits, this problem would have been solved months ago. Using the chip shortage as an excuse will cover many of these automakers shortfalls for longer than it should.

  2. Two things,
    Government loves the shortage why, simply dealerships jack up prices more sales tax government gets a windfall. If government was so concerned they powers to curb speculation and price gauging.

    Second I think this is more important, this is the modern day version of the oil embargo, it’s interesting how quickly there was a chip shortage. Where chips are manufactured it’s mostly automated. Has government looked into it, not a beep

  3. Just push the seat forward and backward with a lever. How hard it could be. The same can be done to steering column. Todays cars are unnecessarily made more complicated.

  4. Mi solution is simple. Automotive industry will make cars with basic but important asistances systems on which involves active and passive security for the passenger. Backing on time similarly in the past with classic cars. In fact, in the begining, cars didn't has none microchips and other electronic devices. It was purely mechanic. OEM's need to start reformulating new ways to manufacturate cars and these won't necessarly has "Big touch screens" on the dashboard. But the negative side is that hybrids and electric drivetrains requires a lot of that. Otherwise the last low emissions norms setting for the governments won't be achieved.

  5. Many things chips do in a car were mechanical but we made them to be reliant on chips.

    One example is turn signals. They used to be simple coils that determined how frequently they blink. Now they’re controlled by computer chips.

  6. We are accustomed to endless comfort, brainwashed that gadgets and gizmos, improve our quality of life… I celebrate the return to simpler, frugal life styles.

    Hopefully the elimination of Gas Guzzlers too !!

  7. I think i will just keep my golf 7.5 gte that has every single extras in it, because nobody knows when there will be another affordable car that i would be able to buy with all the extras ticked in.

  8. Why do we call it a chip shortage you know these same exact chips were used by Volvo since 1998 and there are millions of cars still containing the ecu I know how to default and recode any Volvo S60 ECU chip these chips are in JUNK YARDS BUY THE OLD FOR THE PART SELL THE CAR FOR ITS PRICE

  9. …Tens of thousands of people protesting around the world of this vaccine mandate and passports issue with no masks being worn. And there has NOT been any "SPIKE" in covid cases that's been reported.

  10. .I love cars too (I have a 2017 Corvette C7 with the fun manual transmission) but it ain't free and stocks are one way to make money.

    ,.,,.,,AMAZON:

    Yep, I bought a ton on the dip. It's getting cheaper relative to its current earnings (half compared to last year).

    …With the Delta virus coming at full speed ahead, pandemic sales will make a comeback.

    Amazon's not going anywhere so I know that eventually it will come back.

    Fidelity considers Amazon as a large growth company (probably because as big as it is, it still only has 7% of the retail market)

    buying via Amazon Smile donations donates some money to my favorite charity too!

    Get on board or be runover, it's up to you.

  11. Along with the chip shortages, automakers are struggling with parts shortages as a whole. Its going to be a long while until things are back to normal, in the mean time the used car market is absolutely sky rocketing with crazy dealer markups on new inventory

  12. So when the computer chip break down while driving 90 miles n on the road it will cost 2000$ for the consumer but over millions for the company when u find out the problem… I hate v tec engines n engines that has more then three senior on it …….cheap.

  13. Welcome to communism…. I’m from ex soviet cauntry and all soviet union and all communist countries history there was deficit of something…. Never thought that it would hit ISA but, here we are… my truck is build and due to chip shortage I can not receive it…

  14. The world has become too reliant on this technology, keep in mind that we have been making cars for several decades without these luxuries. People need to toughen up instead of having the world make things easier. I learned to drive a stick shift on a tractor, I don’t need those features.

  15. This is all lies. People are so easily fooled. Just a few years ago the elites would not have mounted such a huge lie campaign just to take up money faster. If they convince you that cars are scarce, you will pay tens of thousands more for cars that are mechanically obsolete but constantly talk to you as you drive.

  16. These people don't what all is going on, 60% of the chips are made in Taiwan. China is has been feuding with Taiwan for a while and is escalating. If a war breaks out there, we could be looking at a long chip shortage. I personally think China using Covid and may invade Taiwan next to further cripple America. Manufacturers should start making cars/trucks without chips, or make their own chips.

  17. Cars nowadays have too much technology in them anyway to be practical. Why do you need to navigate several infotainment pages to change radio channel if it can easily be done by a dial? Why do we need power seats when a simple lever does the same job?

  18. US car cos are crippled by chip shortage, sales down across the board.

    China auto sales are up…particularly ev sales up between 80% to 300% y/y. What are the Chinese doing right?

  19. Ford Chevy GMC Etc are built so poorly nowadays vs really old school cars y'all suck they are so poorly made it's ridiculous but they now ask hundreds and thousands of dollars this is all by choice not chance

  20. If you used robot arms and machines to efficiently and reliably produce your chips at home instead of abroad, you'd be dominating the industry right now. Reshoring supply chains is the future.

  21. Keep it simple stupid. I personally don't like how complicated cars are new. Anything electronic goes bad it's expensive to fix. I miss 80s and 90s simplicity of cars. Wish you could by a base model with no infotainment system or manual windows locks. I personally don't need all that to drive my car. Some of it causes distracted driving.

  22. Just in Time, it a global issue effecting every industries who relied on JIT for so long e.g. fresh food in supermarket or critical medicine in hospital.

  23. The U.S strangle hold/arm twisting on the countries that hold the patents/machinery for the chip foundrys is the main cause of chip shortages. If the U.S punitive actions against China were lifted, China have the knowledge and manpower to remedy the situation overnight.

  24. The bright side is it’s a sellers market (from the standpoint of car owners). I went to get an oil change on my ‘19 Jeep Compass. They offers me way more than I owed. Then I picked up a very nice, used 2018 Grand Cherokee Limited.

  25. The future is not in front of you, it's in your past.

    Here is a crazy idea but it might work.
    1: stop putting all that tech in cars, and start selling a real base model car again.
    2: a check off catalog for every add on that you want in a car, no more just offering package or trim models. If you want a base camaro with a ls7, that should be allowed.
    3: cut the cost. Cars are way over priced and become harder to work on and more expensive to maintain.
    If you get rid of the fancy tech or add ons, then you need to reduce the the same money that goes into buying those parts.
    4: Start building everything that makes those cars here in the US. I'm talking the steel, fabric. Engines, body's, frames, ect. EVERYTHING!!!
    Why bother buying a car made in Mexico, when you should be buying a car that is fully built on the US economy. That helps the economy grow and provides jobs here in the USA.

    Now that's alot of writing or texting in this matter. But the point is, this is what we use to do here in the USA.
    It's the way it should be.
    Let the customer build their car the way they want it or can afford it.
    Make the car affordable so the average person can buy it and not be sent to the soup kitchen.
    The profit of a car made in America should provide fully to the US economy and it's people.

  26. Why not just create a company that makes the chips and stop dealing with 3rd party vendors do you this would stop Henry Ford he would start his own chip company

  27. overpriced cars nice create a bubble… In three years those overpriced cars will be worthless….. thank you to whoever is running the show …… a great way to take advantage of people …. i hope this is a wake-up call to the American public that we need to start making stuff here again

  28. US Commerce Dept proved that chip shortage was caused by Taiwanese TSMC. Taiwanese have been bad mouthing S Korean companies to win the US contracts with chip production. Same dirty play by communist China. TSMC was also using Chinese middle man to dry supplies to increase prices.

  29. Only the chip supply chain & it's destination was disrupted during covid.
    Chip production actually increased, bang on schedule, during this time.
    Chip makers simply prioritised who the chips go to.
    The auto industry lost out, why, because they refuse to stockpile, to save on costs, & used the risky supply us, just in time, approach to manufacturing.
    Serves them right, greed backfired.

  30. You know what? With this chip shortage, we should go back to using old technology for cars. Manufacturers should make car that is mostly analog and mechanical, doesn't use electronics, and most and important of all a car that is affordable and practical enough for common people to own that exploits the chip shortage by those factors. Only exception is the car can either have an induction motor for an electric option, a traditional gas engine or a combination of both as a hybrid.

  31. Biden is incompent.
    Democrats caused this.
    Back in the 1980's the morons in Washington. Pushed industry offshore v
    Because it was dirty.
    America would only to clean jobs.
    Democrats caused this problem
    Do your research

  32. This is our fault. I remember as a teen a VW bug. No chip; no water cooling. It was PERFECT. We don't need chips in the car. The Bug got 28 mpg. Not bad and was SIMPLE to fix. We don't need no stinking chips.

  33. I just found out that the chips thst they use are so ancient that manufacturers are constantly telling car manufactures to update their tech and they didn’t so that’s a wake up call to them to adapt

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