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No New Car Stock


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Golly gosh, had my car stolen.  So I'm in the market for a new one.  Did the rounds of the dealers in the Nepean Hwy.  WTF no stock and if they do have stock you pay full price.  Didnt realise you can pay over $40k for a Golf.  One dealer said he will have a full range of cars by November :(

 

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Yeah, was looking to get a new RAM, at least at my local dealer for the one I'd want 3 year wait. I also need to replace one of the work cars, can't get stock till September next year at the earliest. Wanted to change over a people mover, 2023. Don't bother asking for a discount cause you aren't getting one. 

All it means is I'm holding onto vehicles longer. If you're selling me a 'whatever' car, i can't get enthused about that to wait years to get one. Or pay overs (which I've also seen on demos).

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I've bought 2 Ford Rangers this year (both for work) (2nd one was a month ago).  Both times, I walked in and bought stock off the floor, got fleet discounts applied and had delivery the next week or so later with options fitted.  That said, I had been to Toyota to look at 79 series and Hilux and dealer advised 12mths for 79 and 9mths for Hilux....

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27 minutes ago, Spectre said:

So the dealers are saying there is a shortage of chips, seems crazy.  We can put a man on the moon, cure the common cold but not build enough chips to run a Skoda

 

Spectre.. from my experience having briefly worked in the Electronics Manufacturing Industry previously you get an annual opportunity to lock in an order requirement (ie parts) which is allocated to you.. you place this order almost 12-15 months prior its not a forecast its an official made to order. example Year 2020 Porsche Global determine they will produce 100,000 cars they order chips in Jan 2019 for delivery end 2019 all 120,000 units are delivered in 1 hit. they order 100,000 units of chips + 20% due to parts potential failure rate. electronics failure rate is generally higher at the beginning and end of a cycle change, although some manufacturers and their QC depts screw things throughout a life cycle with poor quality.

I suspect the Automotive Industry, along with White Goods, Household Appliances, PC Manufacturers, Smart Phone Manufacturers, Game Console Manufacturers etc at the beginning of 2020 with Covid hitting worldwide and it being a 1 in 100 year Pandemic event the Automotive manufacturers would have panicked and cut their initial forecasts and final PO numbers for 2021 likely that factories would go into Lockdown, global demand would dramatically fall. So they cut numbers ie 100,000 cars forecast to be manufactured maybe down to 60,000 + 20% PPFR. Got to remember manufacturers dont like to sit on inventory raw materials, its all about efficiency, output and limited waste and loss, they turn over things as quickly as possible to generate cash flow, ultimately profit.

Reality is demand did drop for a 3-6 month period but then bounced hard when prices of used cars jumped dramatically as worldwide demand started to take out any available stock USED or NEW.

Give you an example I ordered 2 pcars in Feb 2020 due for delivery July 2020 dealer was still positive in sales outlook at the time in Feb, I dropped back in 4 weeks later March 2020 to visit dealer for a chat and was advised almost 60% of local buyers of NEW cars had cancelled orders with buyers panicking and foregoing 5-10% deposits.   

Porsche production was effected in April / May / June in Europe with plant lockdowns and limited production my Feb 2020 orders were finally fulfilled in Oct 2020.

I think there is more positivity in 2021 as such I think 2022 supply constraints will be improved especially in the 2nd half.

The other major factor to remember in Australia is we are a limited volume market, when supply is generally restored we get overlooked in supply volume somewhat as Europe, US and China are key sales markets both from, brand building, volume and profitability perspectives.

 

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Thanks VGTS20.  So there isnt an issue with the Chinese making the chips?  I imagine Apple, Samsung etc would be in a similar boat.   Could we read any conspiracy into the Chinese throwing their weight around?  Perhaps i should test drive a Great Wall :)

Well the RACV havent written my car off just yet, so I may get it back.  Its been 2 weeks and it's yet to be assessed. The bad guys that broke in and stole my car went on a bit of a rampage and boy did they collect a few traffic fines along the way.

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14 hours ago, Spectre said:

Thanks VGTS20.  So there isnt an issue with the Chinese making the chips?  I imagine Apple, Samsung etc would be in a similar boat.   Could we read any conspiracy into the Chinese throwing their weight around?  Perhaps i should test drive a Great Wall :)

Well the RACV havent written my car off just yet, so I may get it back.  Its been 2 weeks and it's yet to be assessed. The bad guys that broke in and stole my car went on a bit of a rampage and boy did they collect a few traffic fines along the way.

Spectre … all I will say is when there is a contraction in the supply channel, the likely outcome is excessive demand, leading to ——>💰😁

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