Seems like it would make sense for Porsche to bid more for chips than say GM since the
911
is so profitable.
Maybe just wishful thinking. I have a demand code (no allocation) for a 992 Targa 4s and am wondering when I will see it.
Any thought on profitability angle mentioned above?
It's not as simple as out-bidding your competition. All these chips are custom-designed devices. The design procurement and production process is lengthy, and not all fab facilities have the capabilities or capacities to produce every type of chip.
There is ramp-up time to switch between manufacturing one type of chip vs another, so larger lots of chips are favorable from a cost-perspective. The smaller production numbers hinders Porsche's ability to get in line to get their chips made.
Auto manufacturers are not just competing amongst themselves for production slots, but also against all the other customers who use chips, which now days, is almost everything you purchase. If it uses electricity, in most cases it contains an integrated circuit of some sort.
In addition to manufacturing issues, there are numerous ongoing supply chain issues that are hampering both the inputs to the chip manufacturing process as well as delivery of finished product not only for computer chips but for just about everything. COVID has made things considerably worse as temporary pauses at any point in the supply chain affect the back end.
So using small numbers as an example:
Porsche buys 1000 chips at $1.00 = $1000
GM buys 10000 chips at $100 = $10000
Porsche ups their offer to $2 = $2000
You are the chip manufacturer, which offer do you accept? Not to mention all the issues mentioned by other posters I think you can see that basic economics doesn’t work the way you’re hoping here. The chip shortage isn’t as simple as offering more money for the item.
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That is what I was thinking. I think based on the desperation to move product, this may be happening.
I hope so because I am in line for a 992 4S.....and there are no more videos or reviews that I have not seen.
The wait is a bummer...first world problem but it seems odd that I want to give Porsche $164,000 and I have to wait in line.
Must be nice Porsche.
At $164,000 you aren't a particularly big fish for Porsche.
Try buying a stainless Rolex for MSRP.
Yes.....I have heard that also. Too much money chasing too few Porsches and Rolexes.
I see it's been a while since this was discussed, but I'm curious—has anyone seen any recent updates on this?
With how things have been shifting in supply and production, I wonder if Porsche has adjusted priorities or if certain features are still getting delayed. Would be great to hear from anyone who has taken delivery recently or has insight on current allocations!
ok...Chip supply issues have been a headache for a while now, especially with priorities being what they are. The whole process of
silicon wafer processing
takes a long time, and delays at any stage can create a ripple effect.
Porsche likely has allocations set long before final builds even happen, so any disruption can shift deliveries. It’s frustrating, but it seems like those with higher-end specs might get priority.
