<!–*/ */ /*–>*/
| It’s a chiptastrophe |
| The shortage keeps messing up a good thing |
Usually the problem with chips is that you can never eat just one.
These days, nobody can get enough.
Every day now, the auto industry’s chiptastrophe gets bigger, costlier and more difficult to believe. Even at a time when it sure feels like there shouldn’t be much that can still surprise us anymore.
A year ago, dealers were just starting to emerge from a lengthy stretch when almost nobody wanted to buy a new car.
And now? Demand is booming. For Ford Motor Co., the latest F-150 is in full swing, the new Mustang Mach-E is stealing market share from Tesla and the Bronco we’ve been hearing about since the Mesozoic Era is almost here.
But because of the Great Global Microchip Shortage of 2021 that somehow nobody saw coming, Ford is telling dealers not to expect many deliveries of shiny new vehicles until at least August. Many figure they’ll run out of inventory well before that, as a story on Page 1 of this week’s issue details.
One dealer told us he’s coping by creating an emergency fund to help salespeople get through the summer and paying through the nose for more used vehicles, just so he has something to offer customers. As he put it: “What’s the lesser of two evils — having nothing to sell, or having overpriced used cars?”
It’s a big year for Jeep, too. The SUV brand is way late to the three-row game but is on the brink of having three new offerings in that lucrative segment. A redesign of its top seller, the iconic Grand Cherokee, is months away as well.
You can bet Stellantis is doing everything in its power to keep those launches on track. One dealer told us for another Page 1 story this week that the automaker considered an out-of-the-box idea to conserve chips — giving buyers only one key fob instead of two — but decided against it.
As of now, executives are assuring dealers that everything is going as planned.
But like we say about the weather in Michigan this time of year, when we sometimes find ourselves mowing the lawn in the snow: Just wait a few minutes. Things can change quickly.
 |
 |
“Virtually all the assets necessary to achieve our vision we already have and have demonstrated. Sometimes we will forget we actually sell more vehicles in this country than anyone else. We have strong brands. We have industry-leading loyalty. And we have an incredibly capable manufacturing team. We have to tell our story better and put a few more points on the board.” |
– GENERAL MOTORS CEO MARY BARRA TO TIME MAGAZINE |
|
From “Time names GM, VW, Tesla, BYD among top 100 most influential companies” |
 |
Coming Monday in Automotive News:
Critical Jeep launches confront lack of chips: This was supposed to be Jeep’s big year, but there is no breathing easy amid a global shortage of microchips. The luxurious Wagoneer and Grand Wagoneer are due this summer, but the Michigan plant that builds them is down through at least May. Production at the Detroit plant responsible for the Grand Cherokee L, due in the second quarter, has avoided downtime … so far. The two-row version of the Grand Cherokee is slated for a third-quarter debut, and the refreshed Compass also is scheduled for a 2021 launch. As the chip shortage continues Automotive News looks at what might happen with these critical launches.
Scratch ‘minivan.’ Nix ‘SUV.’ This is different: Marketing a vehicle is nothing new, but Kia seems to be going the extra mile with the Carnival MPV: it’s creating a new class of vehicle. The brand isn’t calling the people mover an SUV or minivan. The Carnival is instead getting the title of a “multipurpose vehicle.” Kia shares its advertising strategy for the Carnival with Automotive News and offers insight on whether it’s trying to avoid the minivan label.
Weekend headlines
Hyundai, Kia rebound sharply from pandemic low: U.S. sales at Hyundai and Kia more than doubled in April, behind strong retail and light-truck demand, setting monthly records for both brands and largely skirting the industry’s supply woes.
VW brand boss expects chip supply to remain tight in coming months: VW’s procurement task force has been busy around the clock dealing with the issue, which remained at the top of the agenda of the automaker’s management board, VW brand CEO Ralf Brandstaetter said.
 |
U.S. automakers push driver-assist safety: The Alliance for Automotive Innovation unveiled several safety principles related to driver monitoring in vehicles with driver-assist systems as part of a public statement by major U.S. automakers. NHTSA has not yet issued specific regulations or performance standards for driver-assist systems.
Hyundai Kona N takes on hot-hatch segment: Even as the automaker leans into an electric future, it’s stretching the bounds of internal-combustion offerings with the Kona N performance version of its popular subcompact crossover.
<!–*/ */ /*–>*/
 |
|
|---|
 |
|
 |
A selection from Shift and Daily Drive:
 |
May 7, 1998: Daimler-Benz announces a $36 billion merger with Chrysler Corp.