Robert Erskine, England, China discussed on The Autolab


Lifelong car enthusiast and call guy. In coffee in one hand and mention the other. Okay, Very good. And Robert Erskine Linked to the British Empire. If it is still an empire. Yeah. World renowned sculptor, designer and car guy, Rob it Good morning. A very warm welcome to you from a very cold and it's just started to get foggy here in England. What do you think it's for you? It's not going around London not exactly breaking news fog in London is there It was a raincoat named after them Breaking news way, Unfortunately, have our breaking news that our virus pandemic has gone out of control. Broken news. It's broken you so those of you in England who are listening to auto lab and I know that we have a following. Get your masks on social distance. So your hands stay indoors. Snuggle down and listen to auto lab. All right, Robert. What is the braking Auto news from Europe this week? Well, it's really, really cool and slightly, I would say worrying. I don't like to talk about worrying things. But you know, in great Britain, we are very famous. For a lot of delicious color in Italy delights that means food on we do make some very nice food, one of which is our famous fish and chips. Oh, I'll tell you just just the thought of fish and chips just makes me feel very hungry and they are the very best. They're probably the best of England's currently delights. But you can't have your fish without your chips. You're probably thinking. What the hell am I talking about? I am. I'm wondering. Yeah, well, you're gonna be you're gonna be knocked off your purchase this morning because there is a serious situation that is about Hit global production off vehicle manufacturing, and I would imagine a lot of other Manufacturing items that we love. That's our laptops are phones, tablets. Anything that has and you know what I'm going to say anything that has a microchip in it. Is being attacked at this moment. So what is it in a nutshell. Well, Mike, the situation is as follows. Production has slowed right down across the world in terms of almost everything because of the pandemic. One particular component that to really important in cars, and that is what we call a semiconductor. That's one thing and you could also really wrap it all up and call it a microchip. Where do microchips go in vehicles? Well, they are. They're in almost every controlling circuitry that you could think of. Think of your electronic control unit. Think of your adaptive braking system. Think of your climate control that you have in your vehicles where you consent, the heating and the air conditioning to do what it's supposed to do. All of these things are controlled. My micro chips. Microchips are very hard to spot if you drop them on the floor because they're so very, very small. Hence the name microchip, but they do a very important job of controlling all the Elektronik control units that we think off. Think of also your electronic stability program that you have in your vehicle. Think of a BS. The list goes on and on and on and what is happening is that China is literally soaking up most off the production of chips because a lot of these chips are made in China. And the reason for this simply is because China is one of the biggest continents on this planet that has an insatiable appetite for new vehicles, hence a lot of manufacturers of beating a path to China to set up shop and sell their wares. They are soaking up most of these microchips for their vehicle production, and it's causing a real issue in terms of production here. In mainland Europe companies such as B V W. Companies such as Bush, who is one of the world's largest porter's supplier, off components and parts are now stating their our supply chain bottlenecks. A certain components, which all contain the microchip on it's predicted that as we run into 2021, there is light at the end of the tunnel. There's going to be a slight flickering of the bulb. Due to a demand for these chips, which means a slowing up off manufacturing because parts are running dry and very quickly. Mike Yesterday evening I received a press release to say that Honda is actually About to cease production off one or two of its vehicles at this moment as we are on air because it can't get enough off the microchips. That's where we are Robert. Yesterday when we spoke about this, I did a little research. I found at least that doesn't press releases just talking about how Honda is being affected. And many other manufacturers are going to be slowing down production also, so Nicole, what's this going to do to use copper prices a new car prices? If you can't buy new cause what's going.

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