Comment Re:It's not "obsolete" when there's no replacement (Score 5, Insightful) 416
More accurate to say the car companies aren't putting up enough money to have their needs met. If a 50-cent chip can hold up the production of a $50k car why didn't they have a few more 50-cent chips in inventory? Or maybe pay a buck or two for that chip temporarily so that is higher on the priority tree?
The automakers cut way back on their chip orders when the pandemic hit, leaving their suppliers twisting in the wind. Those suppliers have since found new customers who are willing to pay and it would be pretty stupid on their part to ditch those customers without someone putting up a better deal. That is how markets work.
The buyer I support (in a completely different industry) is currently going through a similar sort of learning: you can work with a regular set of partners everyday through the highs and lows of supply and demand or you can play musical chairs with whoever has the lowest price today. Both can work you just have to except with the latter that sometimes there won't be a chair for you at any price.
The automakers cut way back on their chip orders when the pandemic hit, leaving their suppliers twisting in the wind. Those suppliers have since found new customers who are willing to pay and it would be pretty stupid on their part to ditch those customers without someone putting up a better deal. That is how markets work.
The buyer I support (in a completely different industry) is currently going through a similar sort of learning: you can work with a regular set of partners everyday through the highs and lows of supply and demand or you can play musical chairs with whoever has the lowest price today. Both can work you just have to except with the latter that sometimes there won't be a chair for you at any price.