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Some of the supply issues....

SANZC02

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Got a blurb from a financial planner [C. Couyoumjian] with some of the recent issues with supply chains.

A lot of this has been discussed in several of these threads but this is a pretty good summary. There are numbers at the end of each section that reference data sources. I thought I would share some of the information with this forum for those interested.

Trade disrupted
Longer delivery times caused shortages of some raw materials and many types of consumer goods purchased from overseas. Congestion in the busiest West Coast ports left dozens of huge container ships from all over the world anchored off the California coast, waiting to unload. These log jams peaked in February 2021, when imports surged. Now that port workers can be vaccinated, operators are aiming to clear the backlog by the summer.3 In March, a six-day blockage of the Suez Canal by a grounded cargo ship caused massive disruption in international trade. Globally, container ship capacity is stretched and demand is high, so costs could remain elevated for some time.4

Texas freeze
In mid-February, a brutal winter storm knocked out the power grid in Texas, shut down numerous chemical plants, and froze the production of plastics used for packaging and materials needed to make many goods, including auto parts, computers, PVC piping, and paint. This resulted in global shortages, production delays, and higher costs for manufacturers and homebuilders, which will likely be passed on to buyers.5

The same storm closed major chicken-processing plants. Large losses of chicks and eggs, on top of COVID-19–related staffing problems, caused a nationwide chicken shortage and price hikes for restaurants.6

Chips and cars
A global shortage of semiconductors, or computer chips, is limiting the production of all kinds of goods, including home appliances, cars, PCs, gaming systems, servers, and 5G equipment. The effects of the chip shortage are far-reaching but most evident in the market for new and used cars. Auto makers have been forced to cut production of more than 1.2 million vehicles in North America. Dealer inventories are strained, and new and used car prices are causing sticker shock.8-9

The U.S. Senate is debating a bipartisan bill that would invest $100 billion in research, commercialization, and training programs to boost critical technologies, including the domestic production of semiconductors.10

Labor concerns
Some employers report having difficulty finding workers who are willing to take lower-paying jobs, and staffing issues are a contributing factor in the shortages. Some workers may be reluctant to accept jobs because the enhanced unemployment benefits provide more income than they would normally earn through work. For others, opportunities to participate in the workforce are more limited due to lack of child care or skill gaps. To attract much-needed workers, some large employers in the retail and restaurant industries have raised entry-level wages. At least 22 states plan to end the $300 federal benefit by this summer in a bid to spur more people to seek jobs.11

Hard lessons
Since the pandemic began, businesses have had to make difficult decisions amidst great uncertainty. Some supply constraints could ease in the coming months, but other problems, like the chip shortage, could take longer to resolve. Recent events also serve as a reminder that critical energy-control systems and infrastructure are vulnerable to cyberattacks and weather events, and that the damage can ripple throughout the economy when energy providers are knocked offline.

In April 2021, inflation shot up 4.2% over the previous year, the highest rate since 2008. Mismatches between supply and demand are pushing up consumer prices, which is one reason many economists believe the spring rise in inflation will be mostly "transitory."12 Regardless, prices rarely fall once they have risen, which means even short-lived bursts of inflation can be painful for consumers.

The longer-term path of inflation is still unclear and could depend on economic policy decisions yet to be made. Moreover, the nation's economic prospects will largely be determined by how U.S. businesses react to the challenges they are facing, and whether corporate leaders can reshape their strategies and invest in ways that strengthen their supply chains for the future.


1-2, 12) The Wall Street Journal, May 13, 2021
3) Bloomberg, May 16, 2021
4) Bloomberg, May 3, 2021
5) The Wall Street Journal, March 17, 2021
6) Associated Press, April 25, 2021
7) CNBC.com, April 30, 2021
8-9) The Wall Street Journal, April 19 and May 13, 2021
10) Reuters, May 17, 2021
11) The Wall Street Journal, May 20, 2021
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Soooo what your saying is the entire world is conspiring against the benevolent and highly eager members of this forum.... That actually explains quite a bit.
In all seriousness it is a lot of outside forces when listed out like this, thanks SanzC02.
 

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Interesting story recently on the rental car and broader car market that is related to chip shortage/COVID.

At the beginning of COVID, rental car companies shed 30%+ of their inventory. Auto manufactures saw a drop in demand and reduced production.

The demand came back faster than they anticipated so rental car companies started looking to re-acquire inventory for their fleets, only to be supply constrained by the chip shortage and other supply chain delays. They have been purchasing used cars to try to fill in but rental car prices have gone up super high if you can even book one.

On the chip shortage, the main impacts were because car manufactures dropped orders causing chip manufactures to close or otherwise drop lines. Specifically, for the chips with older designs (i.e. cheaper and less profitable). The chip manufactures prioritized highly profitable chips that go into laptops, phones, graphic's cards, etc. and chips for cars, IOT devices, etc. were left waiting.

All in, it's caused a rise in prices across the board (older chips, rental cars, used cars, new cars) and bigger delays for everyone. Global economy folks!
 

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Bloomberg reported supply issues and logistics based on their sources

https://www.bloomberg.com/news/arti...ker-rivian-is-said-to-select-ipo-underwriters
The company has experienced delays in receiving parts from suppliers due to backlogs at U.S. ports that are affecting the entire auto industry, according to people familiar with the matter. The later date also gives the company more time to iron out details and logistics for its first deliveries to customers, one of the people added.
 

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The demand came back faster than they anticipated so rental car companies started looking to re-acquire inventory for their fleets, only to be supply constrained by the chip shortage and other supply chain delays. They have been purchasing used cars to try to fill in but rental car prices have gone up super high if you can even book one.
That is why I sold my low-mileage 2017 Nissan Murano Platinum Edition back to Nissan and was able to recoup $4251.08 in car value that was not there the previous month. Car buy-back prices are skyrocketing right now.
 

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That is why I sold my low-mileage 2017 Nissan Murano Platinum Edition back to Nissan and was able to recoup $4251.08 in car value that was not there the previous month. Car buy-back prices are skyrocketing right now.
Im really debating on selling my 2011 mainly because of the use car prices that are what they are right now. The only problem is Ill be out of a SUV for who knows how long lol.
 

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Got a blurb from a financial planner [C. Couyoumjian] with some of the recent issues with supply chains.

A lot of this has been discussed in several of these threads but this is a pretty good summary. There are numbers at the end of each section that reference data sources. I thought I would share some of the information with this forum for those interested.

Trade disrupted
Longer delivery times caused shortages of some raw materials and many types of consumer goods purchased from overseas. Congestion in the busiest West Coast ports left dozens of huge container ships from all over the world anchored off the California coast, waiting to unload. These log jams peaked in February 2021, when imports surged. Now that port workers can be vaccinated, operators are aiming to clear the backlog by the summer.3 In March, a six-day blockage of the Suez Canal by a grounded cargo ship caused massive disruption in international trade. Globally, container ship capacity is stretched and demand is high, so costs could remain elevated for some time.4

Texas freeze
In mid-February, a brutal winter storm knocked out the power grid in Texas, shut down numerous chemical plants, and froze the production of plastics used for packaging and materials needed to make many goods, including auto parts, computers, PVC piping, and paint. This resulted in global shortages, production delays, and higher costs for manufacturers and homebuilders, which will likely be passed on to buyers.5

The same storm closed major chicken-processing plants. Large losses of chicks and eggs, on top of COVID-19–related staffing problems, caused a nationwide chicken shortage and price hikes for restaurants.6

Chips and cars
A global shortage of semiconductors, or computer chips, is limiting the production of all kinds of goods, including home appliances, cars, PCs, gaming systems, servers, and 5G equipment. The effects of the chip shortage are far-reaching but most evident in the market for new and used cars. Auto makers have been forced to cut production of more than 1.2 million vehicles in North America. Dealer inventories are strained, and new and used car prices are causing sticker shock.8-9

The U.S. Senate is debating a bipartisan bill that would invest $100 billion in research, commercialization, and training programs to boost critical technologies, including the domestic production of semiconductors.10

Labor concerns
Some employers report having difficulty finding workers who are willing to take lower-paying jobs, and staffing issues are a contributing factor in the shortages. Some workers may be reluctant to accept jobs because the enhanced unemployment benefits provide more income than they would normally earn through work. For others, opportunities to participate in the workforce are more limited due to lack of child care or skill gaps. To attract much-needed workers, some large employers in the retail and restaurant industries have raised entry-level wages. At least 22 states plan to end the $300 federal benefit by this summer in a bid to spur more people to seek jobs.11

Hard lessons
Since the pandemic began, businesses have had to make difficult decisions amidst great uncertainty. Some supply constraints could ease in the coming months, but other problems, like the chip shortage, could take longer to resolve. Recent events also serve as a reminder that critical energy-control systems and infrastructure are vulnerable to cyberattacks and weather events, and that the damage can ripple throughout the economy when energy providers are knocked offline.

In April 2021, inflation shot up 4.2% over the previous year, the highest rate since 2008. Mismatches between supply and demand are pushing up consumer prices, which is one reason many economists believe the spring rise in inflation will be mostly "transitory."12 Regardless, prices rarely fall once they have risen, which means even short-lived bursts of inflation can be painful for consumers.

The longer-term path of inflation is still unclear and could depend on economic policy decisions yet to be made. Moreover, the nation's economic prospects will largely be determined by how U.S. businesses react to the challenges they are facing, and whether corporate leaders can reshape their strategies and invest in ways that strengthen their supply chains for the future.


1-2, 12) The Wall Street Journal, May 13, 2021
3) Bloomberg, May 16, 2021
4) Bloomberg, May 3, 2021
5) The Wall Street Journal, March 17, 2021
6) Associated Press, April 25, 2021
7) CNBC.com, April 30, 2021
8-9) The Wall Street Journal, April 19 and May 13, 2021
10) Reuters, May 17, 2021
11) The Wall Street Journal, May 20, 2021
Ok, can I add my problems here as well? We all have issues of some kind, I just want my R1T please.
 

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Im really debating on selling my 2011 mainly because of the use car prices that are what they are right now. The only problem is Ill be out of a SUV for who knows how long lol.
It has definitely made things interesting...on the way home yesterday, the Model S, OUR ONLY CAR, had passenger side lower control arm failure....Yay me! Simply turning right while backing up...pop!

Thankfully Jacksonville has a Service Center. This will be huge as Rivian ramps up production, and therefore deliveries, Service locations MUST be in place.

Rivian R1T R1S Some of the supply issues.... LCA
Rivian R1T R1S Some of the supply issues.... LCA2
Rivian R1T R1S Some of the supply issues.... LCA3
 

skyote

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It has definitely made things interesting...on the way home yesterday, the Model S, OUR ONLY CAR, had passenger side lower control arm failure....Yay me! Simply turning right while backing up...pop!
Normally I would try to make light of a situation like this...laughter is the best medicine, right?

But I wouldn't want to bust your balls (joints), as it looks like that's already happened.
 
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SANZC02

SANZC02

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It has definitely made things interesting...on the way home yesterday, the Model S, OUR ONLY CAR, had passenger side lower control arm failure....Yay me! Simply turning right while backing up...pop!

Thankfully Jacksonville has a Service Center. This will be huge as Rivian ramps up production, and therefore deliveries, Service locations MUST be in place.
That is a bummer.

Will be curious how long Tesla takes to resolve that.
 

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skyote

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Thankfully Jacksonville has a Service Center. This will be huge as Rivian ramps up production, and therefore deliveries, Service locations MUST be in place.
This brings up an interesting question. Where will Rivian draw the line between mobile service & service center items?

I believe the Rivian mobile service fleet will be via partnership (Cox Automotive subsidiary Pivet is my guess), but service center will be their own employees.

An issue like yours could go either way...you must have the right tools, but ball joints could be a "driveway" repair; I've done it, armed with the right amount of cold cans & cuss words. Although, having a lift makes things like this much easier.
 

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...An issue like yours could go either way...you must have the right tools, but ball joints could be a "driveway" repair; I've done it, armed with the right amount of cold cans & cuss words. Although, having a lift makes things like this much easier.
Toss a couple of these in the back of their R1T repair vehicle and there's not much they couldn't fix on the spot.

Shop MaxJax M6 Portable Two-Post Car Lift
 

jimcgov3

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That is a bummer.

Will be curious how long Tesla takes to resolve that.
I will keep everyone posted. They got the S sometime around 1145-1200 today. Within that next hour, they had it in Service mode...at this point, I can't see what they have going on with the car.
 

jimcgov3

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...you must have the right tools, but ball joints could be a "driveway" repair; I've done it, armed with the right amount of cold cans & cuss words. Although, having a lift makes things like this much easier.
The right tools is one thing but this is going to require an alignment...will they be about to complete that on a mobile service appt??? I honestly don't know.
 

thrill

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The right tools is one thing but this is going to require an alignment...will they be about to complete that on a mobile service appt??? I honestly don't know.
There's mobile alignment hardware too. No idea if these techs will have such gear though, and at some point it's cheaper to just tow it, seeing as the customer doesn't have much choice.

Tru-line Wheel Alignment | The BEST portable, affordable wheel alignment system on the market today. USA Made.
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