Sponsored

We're far from done with production hell

Morris4x4

Well-Known Member
First Name
Morris 4x4
Joined
Jun 9, 2020
Threads
41
Messages
216
Reaction score
254
Location
Colorado
Website
www.morris4x4center.com
Vehicle(s)
JL, '13 JK
Looks like the shortage has extended to Fords bits as well. An article was released this morning showing thousands sitting in a lot that can't be sold because of no computers to put in them.
Sponsored

 

RedundanT

Well-Known Member
Joined
Sep 9, 2020
Threads
24
Messages
752
Reaction score
1,132
Location
So. Il
Vehicle(s)
2020 JLUR
Looks like the shortage has extended to Fords bits as well. An article was released this morning showing thousands sitting in a lot that can't be sold because of no computers to put in them.
Kentucky Speedway parking lot is full of F250's. Expedition has been down two weeks and probably will be again in a couple weeks. Bowling Green is down next week getting farther behind in Corvette production. I work for a supplier, short days and getting pIssed because I need Jeep parts. LOL
 
OP
OP
JLBoucher

JLBoucher

Well-Known Member
Joined
Mar 16, 2021
Threads
37
Messages
385
Reaction score
688
Location
Rimouski, QC, Canada
Vehicle(s)
'21 2DR Willys 6MT
was not aware of a microship shortage. What do these microships transport?
Tiny, tiny, tiny ships. We can't find any. NO SHIPS IN SIGHT! NONE!

That's my bad english, sorry about that.

Okay, my turn: let's try french, shall we? ;)
 
Last edited:

SnB4xe

Well-Known Member
First Name
Greg
Joined
May 2, 2021
Threads
3
Messages
181
Reaction score
116
Location
Mesa AZ
Vehicle(s)
Wrangler High Altitude 4xe
Teslaā€™s entire production is what, 200,000 vehicles a year?

Thatā€™s how many minivans Windsor alone can produce in a good year.

My guess is Stellantis is routing whatever chips it has to models that bring in the fattest margins, like Rams, Wranglers and Gladiators.
I believe Tesla delivered just under 500k vehicles in 2020.
 

Sponsored

SnB4xe

Well-Known Member
First Name
Greg
Joined
May 2, 2021
Threads
3
Messages
181
Reaction score
116
Location
Mesa AZ
Vehicle(s)
Wrangler High Altitude 4xe
They actually sold 499 500 cars in 2020. En route for more than 600 000 cars in 2021 (180 338 in Q1).
That seems pretty good. I am not really a Tesla fan but I do admire what they are trying to do. More power to them. I hope they can keep their story going for years to come.
 

Roverhi

Well-Known Member
First Name
Peter
Joined
Feb 19, 2021
Threads
1
Messages
55
Reaction score
36
Location
Kailua-Kona, HI
Vehicle(s)
1970 Series 2 88
Clubs
 
Thatā€™s what she said.
Tesla is making a profit not on selling cars but selling electric car offsets to the other car manufacturers. If the electric car credits go away Tesla is in trouble.

Dealer I check regularly used to advertise about a 10% discount from MSRP. Just checked and they are now advertising less than 5% discount on JLUR's. Don't know if they are taking advantage of pent up warm weather demand or a shortage of JLU's caused by the chip shortage.
 

Yogi

Well-Known Member
First Name
Michael
Joined
May 12, 2020
Threads
10
Messages
379
Reaction score
526
Location
Port Dover, Ontario, Canada
Vehicle(s)
2019 Jeep Wrangler Unlimited Rubicon
Occupation
GM, P.Log, CITT, 310T
That's an easy way to rack up message board likes, but not true in real life. Sarbanes Oxley guarantees jail time for management teams who sign off on misstated financials, and Arther Andersen *was* an auditing firm until they were criminally charged with committing financial fraud with Enron. Dividends can still be paid without profits - many companies pay dividends out of current cash balances, and some issue debt to pay them. And show me an Apple shareholder who is unhappy with profits the company puts on the financial statement. To equate a company making money with stock price movements is naive, as there are many unprofitable companies that are stock market darlings. Think of a stock price like the sales price of a wrangler...the cost to build them is relatively stable, but the prices dart around, reflect changes in supply and demand as buyers and sellers transact in the marketplace.
I think maybe you are misunderstanding what I am saying, and my sincerest apologies for not being crystal clear.
I am in no way whatsoever suggesting FCA, Stellantis, or any other company is falsifying their financial statements. What I am saying is that it is incumbent upon their accounting teams to decrease their stated net incomes as much as legally possible to alleviate potential tax burdens, and that is what you read in a financial statement. That is exactly why companies will take on debt to issue dividends. Debt can be written off to reduce tax burden.
Your example of Apple is no different other than the fact they have no more ways to write down their profits to alleviate tax, and therefore must show a net profit. That is also why Apple squirrels away most of its profits offshore, to reduce U.S. tax burden. I'm not saying it is right or wrong. I am just saying that's why it is done.
As for the unprofitable stock market darlings, thank you for proving my point. Stock value is not necessarily reflective of financial statement results.
I'm afraid I can't draw a line between stock price and the price of a wrangler. To me it's apples and oranges. The price of a stock is reflective of the public's appetite to acquire said stock based on its market performance. The price of a Wrangler is derived from build cost plus profit margin.
To clarify one last point, no one from Arthur Andersen was ever charged, criminally or otherwise, with committing financial fraud. The firm Arthur Andersen was criminally charged with illegally destroying documents relevant to the SEC investigation of Enron. However, no one from the Arthur Andersen firm was charged, tried, convicted, or incarcerated.
 

Sponsored

DadJokes

Well-Known Member
First Name
Daniel
Joined
Oct 22, 2019
Threads
75
Messages
2,496
Reaction score
2,119
Location
Indiana
Website
www.youtube.com
Vehicle(s)
Sahara
They'll eventually break ground on the massive Taiwan semiconducter facility in Phoenix. The less made in china, the better.
I was about to ask where all these highly sought components that are in short supply are made. Not conspicuous at all. lol COVID, masks, not much made hereā€¦including these componentsā€¦. Movement in the SE seas, military buildupā€¦I just canā€™t imagine what they intend to do. Duh
 

LooselyHeldPlans

Well-Known Member
First Name
Brandon
Joined
Aug 7, 2019
Threads
65
Messages
972
Reaction score
1,162
Location
Denver
Vehicle(s)
2020 3.6 JLUR
Occupation
Several
I've purposely avoided monitoring the ever-expanding valuations of what I have in the garage, and possibly also in the safe. ;)

Just from reading representative threads, like this one, I can reasonably estimate how much bank I'd make if I sold X, Y or Z. The real problem right now aren't the replacement costs, but rather if another X, Y or Z can be purchased at any price.

It's a mixed blessing to know that certain of our possessions are liquid in a manner, or to a degree, not previously witnessed. Is the juice worth the squeeze, though?
Iā€™m in the same boat. I got offered $52k for my 2020 JLUR (Oct 2019 delivery, 19k miles) and I only paid $47k for it.

Itā€™s nuts and I was tempted to buy a new 4xe and pocket the 5k differenceā€¦ until I remembered why I bought mine and spaced it exactly the way I did. I canā€™t get another 3.6 with no battery crap in a JL anymore.
 

Heimkehr

Well-Known Member
First Name
James
Joined
Sep 3, 2020
Threads
31
Messages
7,034
Reaction score
13,957
Location
Pennsylvania
Vehicle(s)
2021 JLU 2.0T
Iā€™m in the same boat. I got offered $52k for my 2020 JLUR (Oct 2019 delivery, 19k miles) and I only paid $47k for it.

Itā€™s nuts and I was tempted to buy a new 4xe and pocket the 5k differenceā€¦ until I remembered why I bought mine and spaced it exactly the way I did. I canā€™t get another 3.6 with no battery crap in a JL anymore.
Two things come to mind (and I'm just spitballing here.)

1. If resellers like Carvana are offering us near or above sticker price for our used 20xx Wranglers, and we're truly interested in taking today's profit, why not sell the vehicle privately? That'd put more money in our pockets. Listing the Jeep would require just a bit of labor not dissimilar to performing our own house showings. (I've sold trucks, motorcycles and scooters privately, all via Craigslist. I've got the scars, and nothing about the experience scares me. :) )

2. FCA played reindeer games with the configuration tool. Stellantis seems likely to continue this M.O.
-Colors other than White didn't have a $245.00 upcharge, until they did.
-Adding the 2.0T engine to the vehicle build order was a four figure expense, until it wasn't.
-Factory half doors weren't available for 2021 model year Wranglers, and then they were.

It's quite possible that, provided the Pentastar hangs around, it will be made available again sans the eTorque encumbrances.
 

Playbak54

Member
First Name
Bob
Joined
Apr 5, 2021
Threads
0
Messages
18
Reaction score
24
Location
Garland
Vehicle(s)
2021 Wrangler Rubicon JLU
Occupation
Retired
I must have just beat the deadline. Custom ordered a Rubicon JLU on 3/26 and took delivery on 4/22. It seems to have all its partsšŸ˜‰

I heard it wasn't so much a supply shortage as the fact there are no truck drivers to deliver the freight. Port of LA is backed up with lots of ships waiting to unload, but nobody available to pick it up at the port. I think the pandemic really hit the trucking industry hard and it will take a while to crank back up. The final leg from the port to the customer is really hosed up.

Rail dwell time is up to almost 2 weeks. Rail car shortages. None of this is going away soon.
 

Billkowski

Well-Known Member
Joined
Nov 21, 2020
Threads
7
Messages
287
Reaction score
689
Location
Huntsville Alabama
Vehicle(s)
2021 JL 80th 2D 3.6 Etorque, 2023 JT Mojave
They are likely making some profit from the wrangler line, but not much of one. Wranglers are usually less than 10% of overall Stellantis volume, so the margins would have to be really fat for it to make a difference in the bigger picture. Cherokees and Ram pickups are likely the more important profit generators. I also struggle with seeing wranglers as "cash cows" when their most vocal enthusiasts will only buy them when it results in a loss to either the dealer or manufacturer. Do you know anybody who paid anywhere close to asking price for one? I don't, and Stellantis' P/L statement would be a lot flusher if they did. Their numbers are public information, and they are not pretty. Once in a while Jeep Wranglers will drive a swing in profitability, usually around a model redesign, but not consistently. With respect to dealers, their margin is ~ 8% at MSRP, and a loss can result from selling below 97% of FWP -- but at least they can make it up on trade-ins, service and parts.
You are correct, I also know of no one who will admit to paying anywhere close to asking price. Something doesn't line up here.
Sponsored

 
 



Top