Chip Shortage Impacting Production Real or Hype?

Mister_rude

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I am hearing from local dealers that a pending microchip shortage is going to delay all new vehicle production including Jeep Wranglers this spring. I did some quick looking online and one news article says that soon they may jack up prices or ship vehicles without some electronics and then replace them when available. Anyone have any insight as to the impact this may have on Jeep production or is this just a scare tactic? Trying to find the right place and price to order a 2021 JLUR in the next few weeks and am dealing with the local dealer cabal here in the midwest...





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dgoodhue

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I read that the shortage is going to affect vehicle in the fall. The Jeep Wrangler was not one of the affected vehicles, but shortage of new vehicle will likely have an impact on all new vehicle sales and perhaps even used vehicles.
 

JimLee

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There is a worldwide semiconductor shortage, it will affect production of everything electronic. The price of steel and construction materials is also headed for the stratosphere. This is what happens when you shut down the world for a flu.
 

dski

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Concur, real. High end PC graphics card prices are skyrocketing and have huge lead times on any orders.
 

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We were at a Jeep show this weekend and the dealer that was there said any of his customer ordered vehicles that included lane departing feature are all on a wait list. He was called and said if his customers didn’t want that feature they could start the build. All do to the semi conductor issue.
 

TxJeepers

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Talked to Northridge4x4 about a Fox TS steering stabilizer. Tells me 30 days minimum maybe longer. Tells me lots of parts manufacturers for all the little parts that go into shocks are behind causing shock makers to fall behind. Trickle effect. Crazy times.
 

InTooJeep

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Jeep Cares told me my order I placed on March 22 was all set to start the build process soon and that the chip shortage was only going to effect Compasses, Cherokees, 300ms, and older style 1500s - not Wranglers.
 

cram501

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This is what happens when demand outstrips production capacity. From what I understand, auto makers gave up some allocated capacity assuming a downturn in sales. When they tried to get it back, that capacity had already been sold to others.
 

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Not just semi-conductors. I work at a wire harness shop, and there is a huge disruption in the metal supply chain causing outages of normally commonplace crimp terminals. We're seeing longer lead times for wire as well. Also, global supply issues with resins and plasticizers. Container shipments from China are taking 9 to 10 weeks in some cases instead of 4 to 5. Fun times these days.
 

wrc777

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I am pretty sure the manufacturers can shift their chip allotments around so Charger/Challenger and Pacificas are on their second extended shut down due to the chip shortage. I am not sure if Toledo is building at full capacity, but they have not shut down. There are multiple other raw material shortages coming though so I expect all vehicle line production will be impacted by mid April. The refinery shut downs in Texas due to cold weather in February is about to hit the supply chain and it is looking like a total mess.
 

runningshoes

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I've been dealing with this at work since October when the Holiday season orders hit peaks (we buy chips for 2 of our key product lines). Due to Covid, orders for consumer electronics and work related stuff (pc's, laptops, cell phones) are all through the roof. In addition, more and more items are using multiple chips. The auto industry messed up a year ago and is only now feeling the result. Sat in on a global analyst call last week and these guys are forecasting it gets worse over the next 2 quarters, starts improving in Q4, and gets back to normal 12 months from now.
 
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Mister_rude

Mister_rude

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I've been dealing with this at work since October when the Holiday season orders hit peaks (we buy chips for 2 of our key product lines). Due to Covid, orders for consumer electronics and work related stuff (pc's, laptops, cell phones) are all through the roof. In addition, more and more items are using multiple chips. The auto industry messed up a year ago and is only now feeling the result. Sat in on a global analyst call last week and these guys are forecasting it gets worse over the next 2 quarters, starts improving in Q4, and gets back to normal 12 months from now.

Good points! Read today that last summer the car manufacturers reduced semiconductor orders. Now they are at the back of the line.
Auto manufacturers were said to try and get the semi conductor industry to react to their demand and now they are realizing they are small fish in the semi conductor pond. Hope this passes faster than 12 months.
 

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