ASW Conversations: The ‘Rock and a Hard Place’ for Automakers

[Summitric]

June 14, 2022 by Adam Malik

ASW Conversations: The ‘Rock and a Hard Place’ for Automakers​

Auto Service World – ASW Conversations: The ‘Rock and a Hard Place’ for Automakers
Semiconductors are at the heart of many conversations involving the automotive industry.

Shortages caused by increased demand for electronics during the COVID-19 pandemic are hurting new vehicle sales as this key component can’t be produced fast enough to meet automaker needs.

But government mandates around the world for electrification of vehicles are “compounding” the problem as EVs use far more of the component than gas-powered vehicles, says Lewis Black, CEO of Almonty Industries, a Toronto-based global mining company.

“Car manufacturers are caught between a rock and a hard place: They get their allocation of semiconductors but then what do they do with them? They can produce more regular gasoline vehicles with the semiconductors they have because they use less semiconductors. But then you’re going against the great political push to EVs. So then you’ve got to be showing to the wider world that you are increasing your output of EVs. So you are also, in fact, exacerbating your own problem,” he tells Peter Bulmer, host of AutoServiceWorld Conversations.

Black talks about geopolitical challenges, the strategies some countries are taking, the effects of people keeping their vehicles longer and more.

 

[LUCKY 7]

This world is pucked if they keep up the push for EV

 

[jhurkot]

This world is pucked if they keep up the push for EV

And why is that?

 

[JayT]

And why is that?

Going to want to upgrade the power grid first. Unless you're a fan of rolling blackouts. Miners have also come out and said there is not enough lithium in the world to make the Evs that the government's are pushing for. So unless they can Source another type of battery, it ain't going to go very far.
Just for starters.
I like Evs I think they are a great idea for some. Especially if you could charge them off the Sun. But we have to bring some realism into it

 

[JayT]

I find it interesting that in Iran it cost $3 American to fill up a 60 L tank of gas.
What is the percentage of that we are paying? Something doesn't add up.

I just did the math it's roughly 3600% more than they pay. If i did it right

 

[jhurkot]

Going to want to upgrade the power grid first. Unless you're a fan of rolling blackouts. Miners have also come out and said there is not enough lithium in the world to make the Evs that the government's are pushing for. So unless they can Source another type of battery, it ain't going to go very far.
Just for starters.
I like Evs I think they are a great idea for some. Especially if you could charge them off the Sun. But we have to bring some realism into it

What really stresses the AB grid right now is drought (irrigation) and heat (air conditioners).
Miners hate electric vehicles. The same way oil refineries hate gas stations.

 

[lilduke]

Leave it to the government to phuk everything up...

 

[LennyR]

What really stresses the AB grid right now is drought (irrigation) and heat (air conditioners).
Miners hate electric vehicles. The same way oil refineries hate gas stations.

Likely true , so now add a few hundred thousand EV’s, how‘s that gonna work out ?
Good idea for some, but cart before the horse I think . Typical government and idealist thinking .

 

[papajake]

Now Lenny you are just making sense stop it just like 3 jabs and you will be safe

 

[jhurkot]

Likely true , so now add a few hundred thousand EV’s, how‘s that gonna work out ?
Good idea for some, but cart before the horse I think . Typical government and idealist thinking .

Well I don't think several hundred thousand EV's will be added over night. The grid can and will be improved. Does having 200,000 EV's with vehicle2grid technology make the grid stronger or weaker?