Lots are mostly empty of new vehicles!

[mog]

A couple of weeks ago when we were shopping for a car for my wife we stopped by a local Toyota dealership to look at their Highlanders. This is a HUGE dealership - largest Toyota dealer in the state - and even they had cars parked sideways in every other (or every third) spot, and some of the parked cars weren't even models for sale. They were parking already sold (but not yet delivered) vehicles to try and fill up space, as the new inventory alone was too sparse for their lot.

Here the local Ford/Toyota dealer was doing that with a few cars in the center of the lot. Now not even enough vehicles for that, so they are filling the center of the lot with RV trailers (maybe for sale, or maybe for the salesmen to live in as they have no cars to sell ? )

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[Beewdawg]

According to Wiki, Intel is the largest microchip manufacturer. They cannot meet demand, but are investing hugely in new facilities.

Do you know where they're investing in these new facilities?

 

[Gladman]

Same thing here in Alberta. Dealers that normally have 200-250 Ram trucks on the lot have only 10-25, and no more coming until 2022 models arrive.
There are no discounts available either.

 

[jimbom]

Do you know where they're investing in these new facilities?

I know of huge expansion in Albuquerque and Phoenix.

 

[ShadowsPapa]

I know of huge expansion in Albuquerque and Phoenix.

This may sound really silly - but it seems to me that "chip" companies are often in dry climates. Maybe it's just because of the skill sets of the employees, or whatever, but TX, AZ, NM - all warm and dry in places.

 

[FitfulGoat]

This may sound really silly - but it seems to me that "chip" companies are often in dry climates. Maybe it's just because of the skill sets of the employees, or whatever, but TX, AZ, NM - all warm and dry in places.

I think humidity wreaks havoc on a lot of manufacturing processes in general so this wouldn’t surprise me.

I can attest to the fact that Intel is investing a lot of money in their existing plant here in New Mexico at the moment.

 

[FLGladiator]

If you go to Jeep.com to see what is on lots, most of those are scheduled to be delivered and dealers are not even aware of what units they are. Huge problem moving forward. We may have second wave of non public dealers closing or selling out.

 

[jimbom]

This may sound really silly - but it seems to me that "chip" companies are often in dry climates. Maybe it's just because of the skill sets of the employees, or whatever, but TX, AZ, NM - all warm and dry in places.

I'm sure there's something to all that, combined with affordable land and state tax incentives.

 

[legacy_etu]

This may sound really silly - but it seems to me that "chip" companies are often in dry climates. Maybe it's just because of the skill sets of the employees, or whatever, but TX, AZ, NM - all warm and dry in places.

Which is interesting because from what I hear the chip manufacturing process requires a crapton of water. Hmmm, deserts and water usually don’t go together. Isn’t AZ and NM experiencing water issues already?

 

[Garemlin]

I drove by my local Toyota dealer a few days ago and they are even more empty. Like three new cars and less than 10 used. I don't think they are going to be able to stay in business at this rate. Chevy dealer is looking more barren. And the shortage is finally catching up to the Ford dealer. Two F-150s on the whole lot.

 

[ShadowsPapa]

Which is interesting because from what I hear the chip manufacturing process requires a crapton of water. Hmmm, deserts and water usually don’t go together. Isn’t AZ and NM experiencing water issues already?

For years...... AZ, CA and other parts of the western states (western to me in Iowa, anyway) - long-term drought.

I thought it interesting as well - as they super-cool these things, dry causes static (but they can control that) and one reason Microsoft, Facebook and others have built in my area is - ACCESS TO WATER and plenty of it, and access to interstates (I80 and I35 cross here, we're the cross-roads of the country in a way) and access to airports - DSM, even Ankeny has a nice regional airport for executives, etc.)
Microsoft and FB both said in their statements years ago that access to water for cooling their racks of servers, and access to transportation were key to their locating here.

I tossed out my other post because I was trying to figure it out - why are they there? People? Tax benefits? (meaning pay-offs from the pols), work force (Iowa work ethic is great, and we have ISU where the computer and fax were born).
I'm trying to see if anyone knows. No biggy - just that gee, it seems counter to what I think I know about computer chip growing/production.

 

[ShadowsPapa]

Interesting - went to my local Jeep dealer for the bug deflector and as I drove in and out I had to pass their lot - and lot is what I saw - a lot of Gladiators for that little dealer - all in recently, Dam - wish I could afford and justify having two of these things.

 

[legacy_etu]

I drove by my local Toyota dealer a few days ago and they are even more empty. Like three new cars and less than 10 used. I don't think they are going to be able to stay in business at this rate. Chevy dealer is looking more barren. And the shortage is finally catching up to the Ford dealer. Two F-150s on the whole lot.

Yeah, I heard someone say the other day that Toyota is in better shape because they aren’t doing JIT inventory management anymore. Ha, not from what I can see on the ground. The Toyota dealer near me emptied out at the same time as the Hyundai, Ford, Chevy , etc dealers.

side note: My local Jeep dealer offered me $36k for my 5 year old Sahara Unlimited. Crazy. I paid $38k new 5 years ago for it.

 

[ShadowsPapa]

I'm sure there's something to all that, combined with affordable land and state tax incentives.

Land here is crazy. A cheap lot, undeveloped 10 years ago was 35K. My ex-brother-in-law is a multi-millionaire because about 15 years ago he sold the farm land he inherited - 180 acres for what was then a record price - over $20,000/acre.
Lots in this area - 40-45K each. Developed in certain locations, even more.

Likely these outfits don't want to pay - and Iowa isn't a cheap tax state. So maybe that's it.

 

[jimbom]

Which is interesting because from what I hear the chip manufacturing process requires a crapton of water. Hmmm, deserts and water usually don’t go together. Isn’t AZ and NM experiencing water issues already?

Considering Phoenix has enough water to cool a nuclear power plant, there's surely plenty to spare to make a few chips. It doesn't seem Albuquerque has a problem either. It sits on the Rio Grande.

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