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GM CEO Barra on First Quarter, Chip Shortage, EVs
May 5th, 2021, 9:46 AM EDT
General Motors CEO and Chair Mary Barra discusses first quarter performance, the semiconductor shortage's impact on vehicle production, and efforts to electrify its lineup on "Bloomberg Surveillance." (Source: Bloomberg)

Interview: Click HERE

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A picture of thousands of Ford trucks just parked at their Kentucky facility waiting for chips:

Thousands of New Ford Super Duty Trucks are Parked Near the Kentucky Factory - The Fast Lane Truck (tfltruck.com)

Seems like Chevrolet might have more chips than Ford and Dodge, no wonder we're seeing so many more new Chevys on the roads than new Fords.
It seems indeed. JIT system has its flaws. It would seem the United States has been exposed for its vulnerabilities and its time to do a proper supply chain security evaluation.
Medicines and Computer Chips. The previous Admin fixed the steel and Aluminum issue, but, even that needs securing. What else do we not have here?
 

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Here's the financial info to go along with Barra's comments:


 
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Here's the financial info to go along with Barra's comments:


Thanks dannyg. The Q1 2021 EBIT figure of $4,317 million is the highest GM has achieved since Q3 2020.

As usual, GM North America and GM Financial are the company's money makers. These two operating segments accounted for 98% of GM's EBIT in Q1.
 
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As vague as a politician with a lot of her responses, but at the same time it isn't surprising she is vague. I'll be interested to see what the long term response is for the shortages - I assume there are only three responses 1) Do nothing and continue with current practices 2) Create stockpiles 3) build your own production (however, they are subject to going down and you'd still need stockpiles).
 

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As vague as a politician with a lot of her responses, but at the same time it isn't surprising she is vague. I'll be interested to see what the long term response is for the shortages - I assume there are only three responses 1) Do nothing and continue with current practices 2) Create stockpiles 3) build your own production (however, they are subject to going down and you'd still need stockpiles).
You don't necessarily need to develop your own production, you could get new suppliers with different/better arrangements, for example Intel has announced they want to make chips for car makers. It will take 6-9 months to get it all set up.

 

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You don't necessarily need to develop your own production, you could get new suppliers with different/better arrangements, for example Intel has announced they want to make chips for car makers. It will take 6-9 months to get it all set up.

Certainly will be a help to have Intel chips/better suppliers, but, this crisis has definitely shown the weaknesses of just in time manufacturing - it's made very real, the impossible scenarios that no one planned for. Even with better suppliers, they are still at risk for going down. I'll be curious to see if JIT starts to fall by the wayside, at least for critical components.
 

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As vague as a politician with a lot of her responses, but at the same time it isn't surprising she is vague. I'll be interested to see what the long term response is for the shortages - I assume there are only three responses 1) Do nothing and continue with current practices 2) Create stockpiles 3) build your own production (however, they are subject to going down and you'd still need stockpiles).
I don't know. I think the best solution is to work with the suppliers to build better visibility and supply/demand smoothing. That may mean stronger commitments to buy parts from suppliers even when demand drops and carrying more parts inventory during downturns but might be worth the price to avoid situations like this.
 
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I don't know. I think the best solution is to work with the suppliers to build better visibility and supply/demand smoothing. That may mean stronger commitments to buy parts from suppliers even when demand drops and carrying more parts inventory during downturns but might be worth the price to avoid situations like this.
I'm thinking manufacturers will have to stockpile key components, I can't see any way around that. Any supply chain can go down and certain ones might not be able to come back quickly - say if a chip making plant burned down - they can't rebuild something like that quickly at all.
 

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You don't necessarily need to develop your own production, you could get new suppliers with different/better arrangements, for example Intel has announced they want to make chips for car makers. It will take 6-9 months to get it all set up.
You can't grind better terms from chip makers during a supply crunch.

Big Auto is used to pushing suppliers around.

Chip makers don't need Big Auto.

There are less chip makers than automakers.
 

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At least chips are small. It would be simple to store huge quantities in a spare room at the assembly plant.
 

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Seems like GM might have more chips than Ford and Dodge, no wonder we're seeing so many more new Chevys on the roads than new Fords.
I talked with my neighbor over the weekend, he is the GM/Chevrolet Zone Manager for Chevrolet, he calls on 83 Chevrolet Dealerships in Southeastern Michigan; he said there are 5,000 vehicles spread among those 83 Dealers, 65% less than a year ago (when all the plants were shut-down, due to Covid). This is hurting GM a lot too.

LGR just opened back up, they are shutting down again in the next week or two, I assume just building out some orders for 2021's that they've accumulated over the past few months.

Fairfax (Kansas City) Plant, has been down since February and not going back on-line until July.

The fact Ford was able to build the vehicles and add the modules/components post-product will prove to be a huge advantage, a team can work on these at the same time the plant is running WFO (once the parts are available).

At least chips are small. It would be simple to store huge quantities in a spare room at the assembly plant.
These "Chips" are not used loose/independently; they are buried into various modules and components, the company/facility (most independent suppliers of GM) are unable to build the required items without the chips. For Example, Delphi, Bosch, Harman, etc.
 

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However, I presume the cost will be high for that inventory....
Nowhere near as high as all the current lost production. Consider it insurance. Toyota does it.
 
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