FILE PHOTO: A worker at the Volkswagen assembly line in Wolfsburg, Germany 01:43
Hit by a chip crunch, auto makers face a new reality
The semiconductor crunch that has battered the auto sector leaves carmakers with a stark choice: pay up, stock up or risk getting stuck on the sidelines as chipmakers focus on more lucrative business elsewhere.
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China has probably done more in the last 4 years to clean up the environment that US. Look at their auto emissions standards - they went from one of the most lax in the world to standards that rival California. They are also on the leading edge of electrification. Still more work to be done, but they are moving the needle. They are also part of the Paris Climate Accord. Some argue that they are not doing enough as part of that agreement, but that's a different debate.
The simple answer of why Ford and other companies outsource work is because the labor cost are much less. US customers have repeatedly proven that they value lower cost to USA made (see the success of Walmart, Harbor Freight, etc.). The cost differences in our industry are significant. A $500k tool from a US tool maker will probably cost $100k from China. If they both meet the same specs (and the tool makers can prove it), it's not a hard decision to make. This will only change when consumers decide that made in the USA matters.
By outsourcing components and vehicle manufacturing to other countries, Ford can bypass Bill Ford's commitment to the Paris Climate Accord. China is exempt from pollution standards and Ford has invested billions in Chinese factories. The result is less US Jobs, unreliable supply base, more global pollution, and our intellectual property stolen by our CCP Business Partners.
How many F150 sales come from outsourced countries. Don’t see loads of F150’s in China. Worked for a US supplier that was outsourced to China. Had 180 F-150’s in parking lot. After the move, 90% switched to Ram and Silverado vowing NEVER FORD again. Purchasing saves a penny and loses a customer and their families stays bitter forever.