WEBVTT 00:00:00.000 --> 00:00:03.800 Flavio will continue to hear about semiconductor. 00:00:03.800 --> 00:00:10.100 Shortage has tell us what kind of effect that has had two Canadian 00:00:10.100 --> 00:00:14.900 jobs Sports to Canadian Auto towns. 00:00:16.200 --> 00:00:16.700 Sure. 00:00:18.600 --> 00:00:21.700 What we've been seeing through the year is what we call an industry 00:00:21.700 --> 00:00:22.500 on a bit about rolling. 00:00:22.500 --> 00:00:26.100 Brown out that there aren't enough microchips to finish all the 00:00:26.100 --> 00:00:27.700 cars that are scheduled to be bill. 00:00:27.700 --> 00:00:31.500 So automakers are scheduling, which cars are going to get the 00:00:31.500 --> 00:00:34.500 microchips in which were going to wait when you decide that 00:00:34.500 --> 00:00:35.500 some have to wait. 00:00:35.500 --> 00:00:38.500 Because there's a shortage that means big assembly plants 00:00:38.500 --> 00:00:44.200 like the ones in Windsor and in Ingersoll have to go on, 00:00:44.200 --> 00:00:46.400 pause menu. Go on pause people. 00:00:46.400 --> 00:00:49.800 Stay home from work, but those assembly plants all over seats 00:00:49.800 --> 00:00:52.100 and wheels and infotainment system. 00:00:52.100 --> 00:00:57.000 So, all of those Feeder Supply, plants are also down when those 00:00:57.000 --> 00:00:57.700 plants are down. 00:00:57.700 --> 00:01:00.900 And what we're seeing is about fifteen to twenty per-cent 00:01:00.900 --> 00:01:06.300 of production schedule, production being canceled to the year 00:01:06.300 --> 00:01:10.600 and were different plants and different Supply chains. 00:01:10.600 --> 00:01:14.900 And thousands of people being idle for weeks at a time. 00:01:14.900 --> 00:01:18.400 And in some cases you mentioned that to autocar. 00:01:18.600 --> 00:01:21.400 How do you say reprioritize their output? 00:01:21.400 --> 00:01:26.600 How have a car companies responded to the shortage? 00:01:26.600 --> 00:01:29.500 We've heard that Toyota Diversified its supply chain. 00:01:29.500 --> 00:01:31.700 A Hyundai did not cancel. 00:01:31.700 --> 00:01:32.800 It's Chip orders. 00:01:32.800 --> 00:01:44.300 How have the company's adapted an industry? 00:01:44.300 --> 00:01:45.400 That does everything just in time. 00:01:45.400 --> 00:01:48.700 A lot of the automaker said that their trip suppliers. 00:01:48.700 --> 00:01:50.400 We're not going to take deliveries right now. 00:01:50.400 --> 00:01:53.600 Why take inventory of something, you can use some different 00:01:53.600 --> 00:01:57.100 in some head, like the companies that you talked about ones 00:01:57.100 --> 00:01:58.800 that didn't do what they do, is they, 00:01:58.800 --> 00:02:02.900 they've been prioritizing their most profitable line before, 00:02:02.900 --> 00:02:07.200 example, if a company than five million years to build, 00:02:07.200 --> 00:02:09.500 the most profitable ones are the larger, 00:02:09.500 --> 00:02:14.200 SUVs or pick-up trucks will prioritize the use of microchips 00:02:14.200 --> 00:02:14.900 in signals placed. 00:02:14.900 --> 00:02:18.400 These are all these countries and companies that lease. 00:02:18.600 --> 00:02:22.700 In North America are state-owned Enterprises and they've 00:02:22.700 --> 00:02:23.600 got to meet their obligations. 00:02:23.600 --> 00:02:26.100 And the other there they are. 00:02:26.100 --> 00:02:30.100 In some cases, working down those thinner, 00:02:30.100 --> 00:02:32.500 balance, sheet, Augustine down last year. 00:02:32.500 --> 00:02:39.100 The just as tough as not tougher on those balance sheet as of 00:02:39.100 --> 00:02:40.400 the original covid shutdown. 00:02:40.400 --> 00:02:47.300 Put it into perspective for us, read a stat somewhere that suggested 00:02:47.300 --> 00:02:52.200 that the Auto industry consume only one-tenth of global semiconductor 00:02:52.200 --> 00:02:55.300 put that into context for us. 00:02:55.300 --> 00:02:58.200 So I think everybody thinks while we make a hundred million 00:02:58.200 --> 00:02:58.800 cars a year. 00:02:58.800 --> 00:03:05.700 These are advanced technology and must really suck up a lot of 00:03:05.700 --> 00:03:09.900 the microchip, but frankly, if everybody that you and I know 00:03:09.900 --> 00:03:12.200 has a cell phone or two. 00:03:12.900 --> 00:03:16.200 Or a laptop or a, some portable. 00:03:16.200 --> 00:03:19.800 You could see how if in North America, 00:03:19.800 --> 00:03:21.700 maybe we make 20 million cars a year, 00:03:21.700 --> 00:03:26.000 while consumers probably by 400 million cell phones either 00:03:26.000 --> 00:03:32.100 until when the auto sector let go of its supply chain to the 00:03:32.100 --> 00:03:36.100 chipmaker's, you know, we won't be taking those orders when 00:03:36.100 --> 00:03:38.400 they were eating up by all of that. 00:03:38.400 --> 00:03:40.700 Incredible consumer demand for electronics. 00:03:40.700 --> 00:03:43.100 When they went back and said, hey, 00:03:44.400 --> 00:03:46.100 It would like our supply back. 00:03:46.100 --> 00:03:49.900 You know that they had the chip in the street said your cocoon 00:03:49.900 --> 00:03:51.900 Aubrey Graham. No friends in the industry. 00:03:51.900 --> 00:03:57.000 We got two orders here and you'll have to wait until until 00:03:57.000 --> 00:04:02.200 we either photos orders or we build new production in here. 00:04:02.200 --> 00:04:05.900 We are. How long do you speculate this will last? 00:04:07.000 --> 00:04:10.700 What we're seeing is a lot of these major companies there companies 00:04:10.700 --> 00:04:15.800 like in Tallinn Samsung companies in Taiwan stayed on at the 00:04:15.800 --> 00:04:17.800 president, trying to saying, okay. 00:04:17.800 --> 00:04:21.600 Look we see that there's probably a need for about fifteen to 00:04:21.600 --> 00:04:24.400 twenty per-cent more production, but we want to make sure 00:04:24.400 --> 00:04:25.400 that we planned this out properly. 00:04:25.400 --> 00:04:26.800 We got a build up the production. 00:04:26.800 --> 00:04:29.600 This is a very sophisticated production. 00:04:29.600 --> 00:04:30.000 So it's not. 00:04:30.000 --> 00:04:35.000 He will turn it over tomorrow and we'll have another 20% or they 00:04:35.000 --> 00:04:39.100 also don't want overbuilt Arena, build to meet this this, 00:04:39.100 --> 00:04:42.400 this shortage right now, but we also got to make sure these 00:04:42.400 --> 00:04:44.800 are publicly traded companies that were not overcapacity 00:04:44.800 --> 00:04:48.900 next year and then we don't get through a shortage in and then 00:04:48.900 --> 00:04:49.900 create a blunt. 00:04:49.900 --> 00:04:52.600 And so we're looking at, we think any of the street fighting, 00:04:52.600 --> 00:04:56.500 for some return to normal towards the end of the year, 00:04:56.500 --> 00:05:01.300 but really kind of planning for second quarter of next year. 00:05:01.300 --> 00:05:05.800 When you think about Canada's electric vehicle Target, 00:05:07.000 --> 00:05:20.300 Realistic are they decided on that year for electric by 2035 00:05:20.300 --> 00:05:34.500 industry to sell product that people are buying? 00:05:34.500 --> 00:05:38.900 But that's taking it in the, in the really narrow sense that 00:05:38.900 --> 00:05:39.800 we've always looked at. 00:05:39.800 --> 00:05:42.200 You know, what will be the onset of your mission. 00:05:42.200 --> 00:05:47.600 It is very reasonable to expect a very material gain against 00:05:47.600 --> 00:05:52.100 that number. If the government also help support infrastructure 00:05:52.100 --> 00:06:00.000 transition from oil and gas, who are the partners are they private 00:06:00.000 --> 00:06:03.000 or a public charging infrastructure and 00:06:03.800 --> 00:06:06.300 Look, we got to build electric vehicles. 00:06:06.300 --> 00:06:08.200 We need to pull natural resources of brown. 00:06:08.200 --> 00:06:13.000 We've got so much beer in the nickel cadmium lithium in Ontario 00:06:13.000 --> 00:06:16.600 and Quebec. If we trade and Industry around, 00:06:16.600 --> 00:06:19.700 then people will understand it will make it public investment, 00:06:19.700 --> 00:06:22.100 not just in the products that they use, 00:06:22.100 --> 00:06:26.800 but enough you in the near future Generations, 00:06:26.800 --> 00:06:31.100 wealth creation and we can get there and when the only thing 00:06:31.100 --> 00:06:32.800 we flush the Canadian government on the stove, 00:06:32.800 --> 00:06:36.300 they were going to get there in 2035. 00:06:36.300 --> 00:06:39.300 If the rest of the world isn't saying the same thing because 00:06:39.300 --> 00:06:43.300 we only own about 2% of the world's on the market and we can't 00:06:43.300 --> 00:06:54.700 fold. When you take all these components into a consideration, 00:06:54.700 --> 00:06:59.500 has that made you rethink Project Arrow, 00:06:59.500 --> 00:07:03.300 the zero Mission a Canadian designed and engineered car. 00:07:03.800 --> 00:07:08.300 Know what it what it does for me is it says we will announce 00:07:08.300 --> 00:07:10.000 it in January of 2020. 00:07:10.000 --> 00:07:13.700 We were in early and getting that in early means. 00:07:13.700 --> 00:07:19.700 Now 438 companies have to be on this vehicle that demonstrate 00:07:19.700 --> 00:07:23.900 the transition to that technology companies. 00:07:23.900 --> 00:07:30.400 Are there companies that then demonstrate advanced technology 00:07:30.400 --> 00:07:32.200 on a 400 volt platform. 00:07:32.200 --> 00:07:36.700 What is really important for me is a lot of the Canadian 00:07:36.700 --> 00:07:41.600 supply chain is currently creating engine transmission 00:07:41.600 --> 00:07:47.700 parts and some of our biggest companies in that space for have 00:07:47.700 --> 00:07:52.000 made their history on internal combustion or we need to help 00:07:52.000 --> 00:07:56.400 them. Get to this, alternate proposal upholstery business 00:07:56.400 --> 00:08:00.000 companies like margaritas or who have joined us on this path. 00:08:00.000 --> 00:08:03.600 Are there at best battery? 00:08:03.800 --> 00:08:10.600 Adventure with Nano explore, explore that has been has been 00:08:10.600 --> 00:08:15.400 a global leader in powertrains for no General Motors. 00:08:15.400 --> 00:08:20.100 Chrysler turn around and get into that battery Space Project. 00:08:20.100 --> 00:08:25.900 Arrow is a perfect focal point for the Canadian transition 00:08:25.900 --> 00:08:28.700 and were very honored that the companies have entrusted 00:08:28.700 --> 00:08:30.700 us with helping its other store.