https://www.autoweek.com/news/indust...chip-shortage/

 

I hope many supply chain specialists rethinking risks of Just-In-Time Shipping that was made so prevalent in recent years. It would be interesting to see if the damage from forced work stoppage due to chip shortages at Jaguar exceeds the total savings from all JiT over the last decade.

 

Worse than the JIT approach is the fact that almost all the world supply comes from a very small part of the globe totally dependent on the good graces of China.
Also, it is kind of strange given the supply problem, that Jaguar has effectively lowered prices for its F-Types (not sure about LLR vehicles).
Good economic practice would suggest price increases - perhaps they are leaving it up to dealers to max out and upcharge.

 

This isn't a JIT problem, it's the leadtimes of the technology supply chain. In the whipsaw that happened over the last year, when demand tanked, inventory continued to flow until everyone became saturated and pushed out/canceled orders to absorb the excess. When that happens, the chip manufacturers saw a magnified loss of demand and scale (or shut) down production. When the market started to recover, the supply chain was starting from scratch. Chip manufacturing is a high capital business and it's designed to run as close to capacity as possible - meaning it's hard to catch up quickly. With hindsight, I'm sure JLR wishes they'd cranked up orders earlier (and so does everyone else). Everyone in the industry is affected, but Jaguar isn't a major player and I suspect they're suffering in allocation process.

 

IAUI, the chip manufacturers switched to supplying the games makers who had seen a huge upsurge in demand as everyone was stuck at home and wanted distractions. When car manufacturers wanted their supplies again, they were at the back of a long queue.

 

Our Jag/LR dealer just opened a new store on the other side of town. They have few cars at the existing dealership and almost none at the new store. I guess already far along. Lucky they are part of a large local family owned dealer group.

 

Nice explanation of the JIT situation here: Summary: JIT shouldn't mean "don't hold stock of anything" but too often it's interpreted that way

Maybe a few less computers in the car would be better anyway