# The "Chip Crisis"

**URL:** <https://forums.speedlife.net/t/the-chip-crisis/1414107>\
**Category:** NYSpeed Automotive\
**Created:** [May 14, 2021, 10:33am UTC](https://forums.speedlife.net/t/the-chip-crisis/1414107 "2021-05-14T10:33:12Z")\
**Posts on this page:** 20\
**Page:** 1

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**Author:** ![Onyx\_Z32](https://yyz2.discourse-cdn.com/flex034/user_avatar/forums.speedlife.net/onyx_z32/32/7581_2.png) [@Onyx\_Z32](https://forums.speedlife.net/u/Onyx_Z32)\
**Post date:** [May 14, 2021, 10:33am UTC](https://forums.speedlife.net/t/the-chip-crisis/1414107/1 "2021-05-14T10:33:12Z")

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I don’t think we’ve talked about this. Anyone out there looking to buy or sell is experiencing an interesting auto market:

> A used pickup truck sold for 78% more in April than a comparable truck a year earlier, according to auction site Manheim.
> 
> … shipped some Ram pickup trucks to dealers without an electronic blind-spot detection system, Mr. Kelleher said. One buyer was so upset his new $60,000 truck lacked the feature that he walked, Mr. Kelleher said. The man returned hours later. No one else had the trucks.
> 
> GM said it was building some full-size pickup trucks without software that helps manage fuel consumption, reducing miles per gallon.
> 
> Auto makers have sharply reduced vehicle sales to rental companies, prompting Enterprise Holdings Inc., Hertz Global Holdings Inc., and others to take the unusual step of buying low-mileage used cars from auctions and dealerships.

> **[Empty Lots, Angry Customers: Chip Crisis Throws Wrench Into Car Business](https://www.wsj.com/articles/empty-lots-angry-customers-chip-crisis-throws-wrench-into-car-business-11620909719)**
>
> Car makers have cut production of 1.2 million vehicles in North America because of a shortage of computer chips, losing sales amid high demand.

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**Author:** ![Onyx\_Z32](https://yyz2.discourse-cdn.com/flex034/user_avatar/forums.speedlife.net/onyx_z32/32/7581_2.png) [@Onyx\_Z32](https://forums.speedlife.net/u/Onyx_Z32)\
**Post date:** [May 14, 2021, 10:39am UTC](https://forums.speedlife.net/t/the-chip-crisis/1414107/2 "2021-05-14T10:39:00Z")

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> Andrew Arwood drove more than an hour from his Oregon home to buy a Subaru Crosstrek sport-utility vehicle. When he arrived at the dealership, the salesperson told him the car he was promised had sold.
> 
> His new-car hunt took him to other dealers, he said, but staffers wouldn’t let him test drive cars without cash in hand or a prequalified loan. “Everything is being guarded as if it’s made of pure gold,” Mr. Arwood said.

Well, to be fair this happened to me years ago (the driving to an already sold car) so it’s not that unusual.

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**Author:** ![JayS](https://yyz2.discourse-cdn.com/flex034/user_avatar/forums.speedlife.net/jays/32/15375_2.png) [@JayS](https://forums.speedlife.net/u/JayS)\
**Post date:** [May 14, 2021, 11:02am UTC](https://forums.speedlife.net/t/the-chip-crisis/1414107/3 "2021-05-14T11:02:57Z")

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Can you copy/paste that whole WSJ article? Paywall

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**Author:** ![ubengineering](https://yyz2.discourse-cdn.com/flex034/user_avatar/forums.speedlife.net/ubengineering/32/5171_2.png) [@ubengineering](https://forums.speedlife.net/u/ubengineering)\
**Post date:** [May 14, 2021, 11:05am UTC](https://forums.speedlife.net/t/the-chip-crisis/1414107/4 "2021-05-14T11:05:48Z")

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The industry as a whole has dramatically slowed down (manufacturing) because of the chip shortage.

This is the longest I’ve gone in 12 years without working over time, going on 14 weeks this weekend. I’ve never worked less than a 56 hour work week since I started in 2010.

edit - It’s been super nice honestly for my personal life.

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**Author:** ![Onyx\_Z32](https://yyz2.discourse-cdn.com/flex034/user_avatar/forums.speedlife.net/onyx_z32/32/7581_2.png) [@Onyx\_Z32](https://forums.speedlife.net/u/Onyx_Z32)\
**Post date:** [May 14, 2021, 12:23pm UTC](https://forums.speedlife.net/t/the-chip-crisis/1414107/5 "2021-05-14T12:23:04Z")

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@JayS there wasn’t one this morning but now I can’t access it either.

It was a bunch of stories including one dealership who said they have 70 cars on a lot that typically needs 700 for the summer buying season.

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**Author:** ![JayS](https://yyz2.discourse-cdn.com/flex034/user_avatar/forums.speedlife.net/jays/32/15375_2.png) [@JayS](https://forums.speedlife.net/u/JayS)\
**Post date:** [May 14, 2021, 12:39pm UTC](https://forums.speedlife.net/t/the-chip-crisis/1414107/6 "2021-05-14T12:39:42Z")

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> **[Empty Lots, Angry Customers: Chip Crisis Throws Wrench Into Car Business](https://www.google.com/amp/s/www.wsj.com/amp/articles/empty-lots-angry-customers-chip-crisis-throws-wrench-into-car-business-11620909719)**
>
> Car makers have cut production of 1.2 million vehicles in North America because of a shortage of computer chips, losing sales amid high demand.

That link will load on mobile without the paywall. Google’s cache of the article. Same trick I use when I want to read something on the Buffalo News but refuse to sub to that leftist trash paper. 😂

You can also make the link work on your desktop in Chrome by going to menu, more tools, developer tools and clicking the little “Toggle device toolbar” menu option to put Chrome in mobile view. I’ve never figured out how to disable the redirect on the desktop view but I haven’t looked into it much either.

After reading the whole thing… man I wouldn’t want to be shopping for a car right now.

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**Author:** ![yamba6](https://yyz2.discourse-cdn.com/flex034/user_avatar/forums.speedlife.net/yamba6/32/5161_2.png) [@yamba6](https://forums.speedlife.net/u/yamba6)\
**Post date:** [May 14, 2021, 1:02pm UTC](https://forums.speedlife.net/t/the-chip-crisis/1414107/7 "2021-05-14T13:02:09Z")

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I’ve been following the Alltrack group as I’ve been wanting to pick one up. It sounds like a lot of the guys on there were getting smoking deals on them when they bought new. Some being as low as $21k. Those same cars that were purchased at $21k are now being quoted at $25k with about 20k miles on them, some with even more. It’s ridiculous. Anyone paying for that right now is going to lose a lot of money on resale when the market takes a sharp change, which I’m guessing will be in like 6 months.

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**Author:** ![bing](https://yyz2.discourse-cdn.com/flex034/user_avatar/forums.speedlife.net/bing/32/7211_2.png) [@bing](https://forums.speedlife.net/u/bing)\
**Post date:** [May 14, 2021, 1:05pm UTC](https://forums.speedlife.net/t/the-chip-crisis/1414107/8 "2021-05-14T13:05:25Z")

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going to be an interesting hail season what with the dealers already having low inventory and no back-up supply.

market is similar up here. with enterprise not buying or selling like they used to the near-new inventory market is non-existent.

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**Author:** ![juicedz4](https://yyz2.discourse-cdn.com/flex034/user_avatar/forums.speedlife.net/juicedz4/32/5051_2.png) [@juicedz4](https://forums.speedlife.net/u/juicedz4)\
**Post date:** [May 14, 2021, 1:57pm UTC](https://forums.speedlife.net/t/the-chip-crisis/1414107/9 "2021-05-14T13:57:15Z")

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Its a HUGE issue for anyone using “chips”.

The company i work for makes products for the semiconducotor industry and we have MAJOR shortages on parts for nearly all of our products. And its not just IC’s but simple things like resistors and capacitors, many of which are made here or in mexico which were shut down b/c of covid. Lead times have jumped to over a year in some cases.

Our whole group is spending almost all of our time trying to find alternative parts that are available to avoid delays in shipments.

So the people that need to make more ICs cant make more ICs because the people that make the equipment they need to make more cant… classic chicken / egg situation.

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**Author:** ![HouseS2K](https://yyz2.discourse-cdn.com/flex034/user_avatar/forums.speedlife.net/houses2k/32/100273_2.png) [@HouseS2K](https://forums.speedlife.net/u/HouseS2K)\
**Post date:** [May 14, 2021, 3:52pm UTC](https://forums.speedlife.net/t/the-chip-crisis/1414107/10 "2021-05-14T15:52:28Z")

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Buddy of mine has been trying to get a Nvidia 30 series GPU for a while now with no luck.

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**Author:** ![seth13](https://yyz2.discourse-cdn.com/flex034/user_avatar/forums.speedlife.net/seth13/32/8038_2.png) [@seth13](https://forums.speedlife.net/u/seth13)\
**Post date:** [May 14, 2021, 6:22pm UTC](https://forums.speedlife.net/t/the-chip-crisis/1414107/11 "2021-05-14T18:22:07Z")

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Seeing the same with my company. I am in commodity management and am having a hell of a time with capacitors, electrical connectors, and a laundry list of other things. Seeing the same with lead times too. Purchasing to forecast combined with insane market volatility is making a lot of people uneasy.

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**Author:** ![vq30de](https://avatars.discourse-cdn.com/v4/letter/v/9dc877/32.png) [@vq30de](https://forums.speedlife.net/u/vq30de)\
**Post date:** [May 14, 2021, 6:42pm UTC](https://forums.speedlife.net/t/the-chip-crisis/1414107/12 "2021-05-14T18:42:34Z")

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Not just chips. Everything is stupid. Custom structural steel is 9-12 months out. Usually 3 months. Also, cost is about $1600/ton. Usually $300. Construction is tough right now. I’m bidding a $50m project and have no fucking clue how to estimate it. My estimator tried putting a 50% contingency lol

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**Author:** ![LUC1F3R](https://yyz2.discourse-cdn.com/flex034/user_avatar/forums.speedlife.net/luc1f3r/32/7299_2.png) [@LUC1F3R](https://forums.speedlife.net/u/LUC1F3R)\
**Post date:** [May 14, 2021, 8:05pm UTC](https://forums.speedlife.net/t/the-chip-crisis/1414107/13 "2021-05-14T20:05:55Z")

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Sam here, seeing projects canceled because of the jump in pricing. SS tubing that is normally stock is 30 weeks out and 50% premium.

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**Author:** ![yamba6](https://yyz2.discourse-cdn.com/flex034/user_avatar/forums.speedlife.net/yamba6/32/5161_2.png) [@yamba6](https://forums.speedlife.net/u/yamba6)\
**Post date:** [May 14, 2021, 8:09pm UTC](https://forums.speedlife.net/t/the-chip-crisis/1414107/14 "2021-05-14T20:09:54Z")

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I know this isn’t chip or electrical or anything like that, but we are seeing some of the highest prices ever in the grain industry. Crops are at a serious premium and the trucking situation isn’t helping very much either and driving prices up there as well. Fuel will probably climb because of corn prices for Ethanol. Prices for anything feed related is up so we will see the costs of meats up I’m sure soon too.

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**Author:** ![Onyx\_Z32](https://yyz2.discourse-cdn.com/flex034/user_avatar/forums.speedlife.net/onyx_z32/32/7581_2.png) [@Onyx\_Z32](https://forums.speedlife.net/u/Onyx_Z32)\
**Post date:** [May 14, 2021, 11:17pm UTC](https://forums.speedlife.net/t/the-chip-crisis/1414107/15 "2021-05-14T23:17:47Z")

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@yamba6 vegetables too. My father in law owns a vegetable farm and prices are the highest he’s ever seen.

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**Author:** ![bing](https://yyz2.discourse-cdn.com/flex034/user_avatar/forums.speedlife.net/bing/32/7211_2.png) [@bing](https://forums.speedlife.net/u/bing)\
**Post date:** [May 15, 2021, 2:27am UTC](https://forums.speedlife.net/t/the-chip-crisis/1414107/16 "2021-05-15T02:27:37Z")

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i heard inflation is a conspiracy theory tho?!!?

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**Author:** ![seth13](https://yyz2.discourse-cdn.com/flex034/user_avatar/forums.speedlife.net/seth13/32/8038_2.png) [@seth13](https://forums.speedlife.net/u/seth13)\
**Post date:** [May 17, 2021, 12:40pm UTC](https://forums.speedlife.net/t/the-chip-crisis/1414107/17 "2021-05-17T12:40:48Z")

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Has been getting exponentially worse since January… 🤔

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**Author:** ![LUC1F3R](https://yyz2.discourse-cdn.com/flex034/user_avatar/forums.speedlife.net/luc1f3r/32/7299_2.png) [@LUC1F3R](https://forums.speedlife.net/u/LUC1F3R)\
**Post date:** [May 17, 2021, 1:12pm UTC](https://forums.speedlife.net/t/the-chip-crisis/1414107/18 "2021-05-17T13:12:14Z")

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So is scarcity 🥴

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**Author:** ![bing](https://yyz2.discourse-cdn.com/flex034/user_avatar/forums.speedlife.net/bing/32/7211_2.png) [@bing](https://forums.speedlife.net/u/bing)\
**Post date:** [May 17, 2021, 2:47pm UTC](https://forums.speedlife.net/t/the-chip-crisis/1414107/19 "2021-05-17T14:47:53Z")

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everything from Economics 101 is a conspiracy theory now… and when it becomes undebatably true it was obvious but no credit to those that saw it coming… just more credit to the fake-experts who are wrong all the time on purpose for money.

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**Author:** ![drvnkd](https://yyz2.discourse-cdn.com/flex034/user_avatar/forums.speedlife.net/drvnkd/32/109615_2.png) [@drvnkd](https://forums.speedlife.net/u/drvnkd)\
**Post date:** [May 17, 2021, 11:41pm UTC](https://forums.speedlife.net/t/the-chip-crisis/1414107/20 "2021-05-17T23:41:59Z")

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I do not miss trying to find mil spec pcb parts when I only used 10k/year.

As for rental cars, the selection has been pretty bad at national lately.
