Hi, Shrewd!        Login  
Shrewd'm.com 
A merry & shrewd investing community
Best Of MacroBest OfAll BoardsThe Shrewd’m WeeklyLearn to InvestHow to Become Shrewd
Search
Shrewd'm.com Merry shrewd investors
Search
Best Of MacroBest OfAll BoardsThe Shrewd’m WeeklyLearn to InvestHow to Become Shrewd


The week's question
In December 2024, in the thread "Re: BRK: Why Not XOM?", BreckHutHigh asked the members: "What about the long road trips with kids?" This week it is put to everyone again. The button below opens the small thread re-asking it - read what others have said so far, then give your own answer as an ordinary reply.
Answer this questionContinue to Shrewd'mThis note won't appear again
Personal Finance / Macroeconomic Trends & Risks
Unthreaded | Threaded | Whole Thread (7) |
Author: Steve203 🐝 HONORARY
SHREWD
  😊 😞

Number: of 4460 
Subject: Re: automotive supply chain implosion coming?
Date: 12/06/25 11:35 AM
Post New | Post Reply | Report Post | Recommend It!
No. of Recommendations: 1

It would be that hard to ditch the Chinese suppliers. We are going to ditch the US consumer first.

I remember the Detroit newspapers reporting the first of the big three to start buying parts from China, 20+ years ago. iirc, it was Ford. Ford and GM both spun off their in-house parts operations, as Visteon and Delphi, so they could outsource parts. Visteon and Delphi quickly went bankrupt.

This is a different situation than the "shortage" narrative that OEMs were leveraging to increase prices and fatten margins, in 2021-22. The vendors have sunk a great deal of capital into supporting the OEM's push into EVs. While I have been watching Farley's shucking and jiving at Ford, to avoid writing off the Billions that company has at risk in EVs, until after he retires, the vendors are looking at the same EV trajectory. It's hard to believe those vendors did not have a cancellation clause in their contracts, so they could recover their investments from the OEMs.

Either way, the US' pivot away from EVs is going to send tens of Billions to money heaven.

Steve
Post New | Post Reply | Report Post | Recommend It!
Print the post
Members reply directly to Steve203 here — and replies get answered. Reading is free; so is joining the conversation. Join Shrewd'm »
This community has written 4,454 posts about Macroeconomic Trends & Risks. The article-length ones it recommended most:
AI Tarpits · 36 recs · 2026
End of an era - profit slowdown · 36 recs · 2023
Control Panel: Trend changes in 2026 · 34 recs · 2026
From the Oregon Bay Area (a blogger) · 33 recs · 2025
Lerner Symmetry Theorem · 32 recs · 2025
Unthreaded | Threaded | Whole Thread (7) |


Announcements
Macroeconomic Trends & Risks FAQ
Contact Shrewd'm
Contact the developer of these message boards.

Best Of Macro | Best Of | Favourites & Replies | All Boards | Followed Shrewds | Open Questions | Moving a community