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Old 01-24-2022, 08:15 AM   #9
Tcoat
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Normally the parts orders cover a set number of cars over a 3 year contract. It can cost the car companies big dollars to go over or under that set number of parts. Yes, it costs them to go UNDER since the price was set for X quantity and they will pay for that quantity whether they use them or not.

Except...

The contract will allow them to go under quantity in the case of "unusual circumstances mutually agreed to by both parties". The parts shortages lately have been accepted as unusual so the companies can make as few as they want without penalty.

So...

I would expect to see the second gen run for 3 years while those contracts play out. How many of them they actually make may be a different matter though since they will use the available resources for their bread and butter profit cars. Beyond that 3 years then the conditions that Yosho mentioned start to kick in and what that means is anybody's guess at this point.
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