Tacoma/Tundra Prices To Go Up Due to Chip Shortage

For those interested.

https://www.bloomberg.com/news/arti...ply-chain-helped-it-weather-the-chip-shortage


Part of the reason I'm trying to cash in right now. Instead of when it's all over lol. Figuring I can get an extra 3k for my truck and only lose out on 1-2k of discount.

 

I guess its a good time to sell if you don't spend the extra money buying another one.... haha

 

Modern vehicles require too many semiconductors. There must be some source of renewable technology that automobiles can rely on.

 

Stock pile of what? Chips?

Unless the stockpile of vehicles is top secret...The article is pretty clear on what Toyota's supply is: "The chip shortage continues to cause production disruptions for nearly every automaker, and according to Cox Automotive, there's only about a 25-day supply of Tacoma and Tundra models for the entire US. For the auto industry, that's extremely low, hence the lack of rebates."

 

The other factor thinning inventory is that sales are way up in Q1 21 vs Q1 20.

 

I wish this would be a wake up call to manufacturers that building new cars more simple is the way to go.

 

That's a good point--the demand side is def strong. I wonder how Q1 21 sales compare to Q3 20 and Q4 20 though. I imagine the latter two are higher...which could be another factor severely limiting supply for Q1 21.

 

I somewhat agree, but...Toyota arguably builds the simplest cars of all manufacturers lol Look at all the complaints on how the Tacoma, 4Runner, and Tundra have hardly changed in the past 10-20 years (and some call the Tundra an ancient platform).

Customer demand for the latest tech is driving the race for all the tech features. Arguably, Ford is maybe the one who stakes their future most on offering the latest technology in cars.

 

Here’s what the price of a Tacoma was with the markup for limited production… $6995! This was in Hanford California

 

Here’s a better photo…

 

Time to look in AZ. No up charge and $1000 rebates still going.

 

Who the hell pays that? I know it is part of the dealer song and dance. "Hey man, the boss wants an extra $6900 because we just cant get any more of these, but I can get him down to $1000 over MSRP".

 

Supply and demand.

There are people willing to pay because they're unable to wait or REALLY want that specific taco because of options. Whether they're stupid or not. It's their money.

 

I love my truck. I’m glad I have it and all of its chips.

 

My God that’s beyond a ripoff! I’ve seen some crap that SE Toyota dealers pull with their addendum stickers but that is the worst I’ve ever seen!

 

That is disgusting

 

MOST of the auto industry's chip shortage is self-inflicted. They canceled orders about this time last year, due to a drop in consumer demand.

Normally, not a big deal, just pick up more fab space when the market starts to pick back up. But these are anything but normal conditions. The demand for consumer electronics has been through the roof these past 12 months. So not only has all the fab space they relinquished all been bought up, the fabs have sold all of their buffer space space as well. Semi-conductor fabs normally operate at around 80-90% capacity, but they've been running at 100% capacity.

So this isn't a case of not being able to get what they ordered, it's that they can't order any extra chips to make up for what they cancelled. From what I've read Toyota is in better shape than most on the chip side, because they cancelled a much smaller portion of their chip orders. However they're still being hurt by a shortage of other materials.

 

I can assure you that manufacturers don't want to produce complicated vehicles. But government regulations and customer demand are the reasons that vehicles are the way they are.

Faster, stronger, safer, more efficient, greater connectivity, more creature comforts....the bogie on that list of demands is always moving.

Some of these advancements are not a bad thing. But collectively they do add complexity and cost. No way around that

 

Texas you can find a ton of 2020 and 2021 Tundras.

I love it when customers ask, "what will it take to get more chips" Uh, got a spare $20 Billion?

TSMC said they needed more capacity three years ago. Oops, draught, so they don't have enough water to process the wafers.

https://www.reuters.com/article/tsmc-investment-idUSL3N1O737Z

 

I would think current Tundra production is pretty much nearing the end of the line, they should be getting ready to covert everything over to the next generation.