Searching for Auto Parts: Why is it so Difficult?

A number of, auto manufacturers and part makers, whether for ATV or for a car or a brake assembly. They're adjusting manating the non essential features or components. Many of you are probably having problems and having your car repair or, you're waiting on a particular model, of a car that you really like, and, they put you on a wait list. And so a lot of you are have been schooled with a pandemic waiting, but you might be wondering where outside the pandemic Why am I still waiting? There are good reasons for this. First of all, supply chains, they were not broken during the pandemic. They were simply bruised. Quite a bit. And so what this means is that they have not fully reconstituted themselves, the parts shortage. The auto parts shortage is example, and it's a major concern for the industry. And this was caused by a variety of factors, supply chain disruptions that continue labor shortages and also just shipping delays and continuing gift of the pandemic. There's also the aftermarket accessories they are also experiencing the same kind of shortage issues on both new and used vehicles. Their model, any part, anywhere, anytime that's being severely tested these days. The most because they're having the same trouble as the the general industry, which is that they're struggling with getting access to raw materials. The most complete solution to resolve this disruption in the auto parts industry would be for manufacturers to provide an inventory back stop, which they have been reluctant to do. And so think of all the small suppliers, that are so critical to supply chains. For the automakers. Even a small bracket or bolt or plastic, component or parts, If they don't arrive on time, the production line does not start. And so the auto parts aren't made, the last three years automakers have been struggling to catch up, and recover from the pandemic. Many companies are in work shape because their volumes, their production volumes haven't returned as they were before the pandemic. And so they're also faced with a higher borrowing cost. As you've seen with higher interest rates. And so, and there are a number of other expenses too, but interestingly, the auto are making more money than that, which is why they had the UAW strike. Some automakers are avoiding the shipping delays in terms of not being able to get parts by eliminating those non essential features or components, that they have on a pickup car or an auto park And so their thinking is simply that call it the good enough philosophy from a friend of mine at Harvard University. It's the idea that customer doesn't need everything. They might be willing to accept last particular car or a part if, they can get it. And so a number of, auto manufacturers and part makers, whether for ATV or for a car or a brake assembly. They're a costing by eliminating the non essential features or components, and their thinking is that customers might be more willing to accept a product if they get it more quickly and think of, a digital control pain. If you can install a a analog control panel and the customer doesn't mind, relieve some of the, shortage And at the same time, you improve your customer service. And so automakers like GM have also been struggling with microchips which has been going on probably for a while longer. And so what they've done is they've looked for other ways of making money. And so what they're doing is they've been using the spare parts that they would normally sell, to repair shops, and, and the like, and they've been putting it into new cars. Which is where the money is. And so I also think of the insurance companies who are riding off vehicles rather than give you a loaner vehicle for a week or two weeks. Because it's cheaper for them. So this also squeezes the availability of auto parts or spare auto parts. And so a lot of thinking is going on these days with the automakers and the auto park manufacturers of just redesigning and and coming up with alternative inputs for the parts and standardizing more components instead of just specializing them, which costs more money if you make them yourself. So these are just some of the, thoughts I've been having, in this manner. Thank you, everyone.