AD #2997 – Chip Shortage Crippling Production; Ford Mustang Going Fully Electric; BMW’s M Sets Sales Record

January 19th, 2021 at 11:45am

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Listen to “AD #2997 – Chip Shortage Crippling Production; Ford Mustang Going Fully Electric; BMW's M Sets Sales Record” on Spreaker.

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Runtime: 9:29

0:07 Chip Shortage Crippling Car Manufacturing
0:42 Chip Shortage Comes at Worst Time for Industry
1:08 Pandemic Helps Cause Chip Shortage
1:42 GM Shows No Signs of Chip Shortage
3:14 Scania Ramping Up Electrification Efforts
4:31 Ford Mustang Going Fully Electric
5:12 Wild Custom Motorcycle
6:08 Tesla Suing Chinese Media Outlet
6:51 BMW’s M Division Sets Sales Record
7:25 BMW Updates Digital Key w/ Ultra-Wideband Tech
7:47 Small Barn Find Needs Identifying

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27 Comments to “AD #2997 – Chip Shortage Crippling Production; Ford Mustang Going Fully Electric; BMW’s M Sets Sales Record”

  1. Kevin A Says:

    Sean, this VW Beetle fender scooter might be the inspiration for the BMW bike https://www.demilked.com/vw-beetle-inspired-motorcycles-volkspod-brent-walter/

  2. Kevin A Says:

    What kind of chips are we talking about and who makes them? Those companies might be a good short term investment.

  3. Buzzerd Says:

    The custom R18 does look pretty cool to me but as with most custom bikes- the more custom they get the more they become garage queens as they become less functional.

  4. Marshy Says:

    Does BMW count badged M cars as part of their M numbers?

  5. Lambo2015 Says:

    Sean I’m not real clear on how this Chip shortage can occur as you mentioned. Mainly because when contracts are awarded within the automotive industry they are for a specific volume and typically 4 year contracts. So even with a blip in production due to covid those companies are contractually obligated to supply chips at the rate they agreed to. So even if they found ways to sell product in the interim when production resumed so should the chips. If it causes shutdowns I would expect some lawsuits to soon follow.

    On sports models selling well. My opinion is they cost difference from the base to M-series has shrunk. As car prices increase the top level and performance level cars haven’t seen as big of a jump and as that gap narrows and your already spending 40K for a car, why not spend the extra 10 or 15K and get the M-series.

  6. Buzzerd Says:

    @5 – 10 or 15 is a lot of cash for most people.

  7. Goose340 Says:

    The vehicle is missing may parts but what is there has the makings of a 1909 Hupmobile two seat roadster.

  8. Lambo2015 Says:

    6 Agreed 10-15k is a lot but with low rates and loans now going out 7 years its an additional $140 to $200 a month on the payment. Not like in years past when the performance brands were twice the price of the median model.

  9. ChuckGrenci Says:

    That BMW custom motorcycle looks like one giant step into the 30′s (no not the 2030′s, back to the 1930′s); I’m not digging it.

    And the electric SUV (of BMW) looks sad as well; they need to make more M’s to help with paying for that electric (awful grille).

  10. John McElroy Says:

    #5. Every purchasing contract has a clause that refers to “force majeure.” Sometimes it’s referred to as “an act of God.” My understanding is that if an OEM invokes a force majeure and cuts orders, a supplier is no longer obligated to fulfill the order.
    OEMs never expected the market to recover as quickly as it did and now they’re shorthanded.

  11. XA351GT Says:

    RIP Mustang

  12. Carl Says:

    Exactly where are the chips used in production? Everything that comes to mind – radio, climate control, gauge cluster I would assume is produced by an outside supplier. So where is the shortage exactly for the manufacturer? This story left out many pertinent details.

  13. Kit Gerhart Says:

    4 BMW doesn’t use “M” near as loosely as Mercedes-Benz now uses AMG, but they seem to have added M to some of what once would have been sub-M cars. The M240i and M440i are much closer to real M cars than the AMG A35 and AMG CLA35 are to real AMG cars.

    https://www.fueleconomy.gov/feg/Find.do?action=sbs&id=42925&id=42876&id=43148&id=42929

  14. Kit Gerhart Says:

    Is most of the chip shortage for proprietary devices, or “off the shelf” ICs?

    12 A number of them are in engine control, air bag electronics, etc.

  15. Kit Gerhart Says:

    11 I agree, but if they are still selling, they can still change their mind, and keep building the current Mustang alongside the new electric Probe, or cancel or delay the electric one.

  16. veh Says:

    I seriously can’t believe Mustang will be EV only. At least not for another 15-20 years

  17. ArtG Says:

    Kit, an article that might interest you:
    https://autos.yahoo.com/1994-plymouth-voyager-manual-transmission-145100625.html

  18. Lambo2015 Says:

    10 Thanks John!

    11,15 Also find it hard to believe the ICE Mustang only has 6 years left. I also found it odd that they announced production to start in December when typical model change-overs are done in July. Especially when they are this far out I would expect them to make the transition during the normal July shut-down.

  19. Kit Gerhart Says:

    17 Interesting. Thanks. My van is a 1989, the first of the two years you could get the 2.5 turbo with a manual.

    I just learned something I didn’t know, based on your link and checking the EPA gas mileage site. You could get a manual in the 1995 Voyager, but 1994 was the last year for the manual in the Caravan. There was no manual in 1991, the first year of the 2nd generation vans, but it returned in ’92 for a few years. Except for ’89 and ’90, all of the manual Caravans were non-turbo 2.2 and 2.5 four cylinder.

  20. Kit Gerhart Says:

    That’s kind of humorous that Ford is saying they will start building a new, electric “Mustang” in December, 2028. Do they really even know what year they might do that, much less what month?

  21. cwolf Says:

    I see the transition from ICE to EV’s by the Detroit manufactures despite public preferences.
    I think sizable risks are being taken to get out of the ICE business in the near future when EV’s have thus far generated a pitance of market share, ample charging stations do not exist in the US and the majority of promised upcoming EV’s remain years away or delayed one year then another.
    How can they say the demand for ICE sedans has dwindled, when it appears the many cars that have had a faithful following were discontinued and replaced with those you would buy for your kids graduation or only suited as a city car.
    I believe the informed majority doesn’t want an EV at this time and sees that EV’s are being shoved down their throats come hell to high water.

  22. Kit Gerhart Says:

    I’ll believe this 50% EV market share in 8 years when I see it. Not only is charging infrastructure horribly lacking, like at my condo, but can there be battery production capacity, and raw materials to make batteries for all of these cars, if half of global production is EVs? That’s 30-40M cars. After all, one EV uses as much battery as about 10,000 smart phones.

  23. Bob Aubertin Says:

    Well, in my opinion Ford Motor Co.has lost it’s mind when it comes to Mustang going ALL electric in ’08.First thing they already have the Mustang “Mach E” which is killing the Mustang legacy and to further Destroy the pony car legend going ALL electric is insane. Mustang IS NOT A GROCERY GETTER.It’s about Power & Sound.Mustang is a High – Performance car culture on it’s own.

    Ford wake up before Henry turns over in his grave.

  24. Bob Aubertin Says:

    Chip shortage!!!

    All Manufacturers should stop trying to bring our living room into our vehicles.We as consumers will have a choice to make real soon.There will be more chip shortages tomorrow .

  25. Kit Gerhart Says:

    23 Mustang is both a high performance car, and a styling exercise. There have been a lot of non-fast Mustangs sold over the years. In any case, announcing now that Mustangs will be electric in 8 years is insane, as was calling the upcoming lifted hatchback a Mustang.

    Yep, sound is part of car culture, as sound is a lot of what makes old airplanes with Merlin V12s and radial engines so cool. With cars, I like hearing anything that you don’t hear very often, like Model Ts and Model As with their low rpm fours that sound totally different from today’s high rpm fours that make 5 times the power to displacement.

  26. Lambo2015 Says:

    We’ll see what happens with market share as Ford tries to give the impression they are the car manufacturer of the future and switch everything over to EVs regardless of demand. gm seems to be a little more cautious and has placed their hat into the ring but not gone as far as providing specific dates. Meanwhile FCA is throwing a hemi in everything and creating multiple variations.

  27. MERKUR DRIVER Says:

    I am OK with an electric Mustang. Sound or no sound. I would have 2 problems with an electric mustang though.

    Handling. These EVs generally have a low cg because the heavy batteries are near the road. However, the battery mass is substantial. Handling is not all about low cg. Mass is the biggest factor because that mass has to be coerced into changing directions. EVs have plenty of mass to go around. I found that the model 3 was about as good in high speed corners as the Dodge Avenger I rented years ago was. It is quite simply far too heavy.

    Range on a track. Yes Mustang owners regularly use their cars on the track. It is where most of their mystique comes from. They are reasonably competent cars to take to the store and also capable to fly around the track on the weekend. EV range on a track is horrific. As horrific as your range is with Gas. The key difference is that you can bring a can of gas with you and be back on the track within minutes. Taking a 1 hour or more charge break during track day means your track day is over.

    If they solve those 2 issues, then an electric mustang would be just fine. If they don’t; then I don’t see the point in a stylized grocery getter. There are plenty of stylized grocery getters on the market.