Waiting for aluminum

Now that I have a Pro Display XDR safely secured to my desk, I am really itching for the 16-inch MacBook Pro with the M1 Max chip to arrive. I still can’t believe that it is scheduled to take seven weeks from when I first ordered it to (October 23rd) to ship to my door. The global chip shortage is real. Even so, even knowing I’ve got about three weeks of wait to go, I can’t help but check the order status page once every few hours, hoping against hope that perhaps I might get the new MacBook Pro sooner.

There’s even a thread on Reddit where all of us waiting for our Apple laptops can commiserate together.

I count myself lucky that I was able to get an iPhone 13 Pro on launch weekend. Apparently the stock of those things, plus the new Apple Watch, are highly constrained as well.

The chip shortage seems to be getting worse, if you’re following the news. BMW announced that they are doing away with touchscreen on most of their lineup until further notice, save the expensive models with an ‘M’ badge. As an owner of a BMW M2 Competition with a touchscreen, I can say it would be no big deal to me if I were confined to only using the physical controls. I hardly touch the screen anyways, because I hate leaving fingerprints on it.

That’s a bit idiosyncratic to me for sure. If I had a BMW on order and now suddenly the dealer is telling me there will be no touchscreen function, I would be annoyed. Getting $500 back in return doesn’t really help the situation when there is an absolute shortage of new cars, and I’m probably paying MSRP (or above) for the BMW in the first place!

I’m so glad I’m not in the market for a new car right now.

Especially for a GM vehicle. Similar to BMW, they’ve announced they are also cutting features from their lineup due to the chip shortage. Instead of touchscreen, GM is doing away with heated seats. This move is baffling to me because heated seats is a feature that is universally loved, and we are heading into the winter season. On cold mornings I really appreciate the heated seats and heated steering wheel of my M2. I would hate to lose those functions just because the world has ran out of silicon chips.

I would bet a not insignificant amount of potential GM car buyers will look elsewhere. Losing touchscreen function is either here nor there; losing heated seats? That’s a deal-breaker in my opinion.

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Way back home.

GM doesn't care to make good sedans

A few months ago Ford announced the company will cease to sell sedans (other than the Mustang) and will focus fully on SUVs and trucks. Most in the industry thought it is a prudent strategy because consumer tastes having switched dramatically to SUVs, and also Ford’s currently lineup of sedans are lackluster to say the least.

Last week General Motors basically announced a similar plan, only that GM will shutdown plants and cut workforce into the 10 thousands as well. The public reception to that have not been so good. The same GM that received the massive government bailout after the start of the great recession, and the same GM that just last year lavished in the cut to corporate taxes, cannot repay the favors in kind by eliminating precious jobs. Those are real consequences to people’s livelihoods, rather than just a different product mix inside a dealership showroom as in the case of Ford.

Even from a strict economical standpoint this plan by GM isn’t entirely positive. It’s true that the market is leaning so heavily towards SUVs that Lamborghini sells one, but that isn’t to indicate the sedan category is dead in the waters. Asian manufacturers are still making quality sedans and continuously improving them (the redesigned Honda Accord is brilliant), and people are still buying. While not completely immune to shift to SUVs, the combines sales of Toyota’s Corolla and Camry remains in the 600,000s annually.

GM simply isn’t making class-competitive cars.

Indeed (negative) reputation plays a part, and I think American manufacturers never recovered from the adverse brand equity it carried from the 80’s and 90’s. Back then if a customer wanted a well-built car that will last for many years, the only option were Asian marques, and brand perception is a heck of a sticking point. Surely you’ve seen the Chevy commercials where “real people” were surprised at the quality of a Chevrolet car; bad reputation is insanely difficult to repair.

These days GM and Ford are making solid cars, but it’s never class-leading. Alpha-chassis Cadillac sedans are some of the best handling cars currently available, but the interior quality is leagues below its rivals from Germany. It can be argued that GM never intend to produce world-class sedans, but merely what’s good enough to move units. Now that those units aren’t moving quite at the numbers of the past, GM decides to eliminate the category from its portfolio completely.

It’s a shrewd move; partly due to prevailing market forces, and partly because GM doesn’t care to make great cars. Thousands will be out of a job because of GM’s incompetence.

Businesses are driven by the bottom line, but I think ceasing production of sedans is the wrong decision. The popularity of SUVs and trucks is partly bolstered by cheap gasoline prices, so then what will happen when prices inevitably go back up? Just like in the early aughts, American automakers will once again not have the appropriate product mix to cater to that demand.

Only there won’t be another bailout; GM never learned from their mistakes precisely because the government saved them from collapse back in 2009.

Working hard or hardly working?