How We Ran Out of New Cars

Avaldati 30 aug 2021
Thanks to Atlas VPN for sponsoring today’s video. Grab AtlasVPN for 1.39$/mo before the deal expires:

COVID had a huge effect on the auto industry, and now manufacturers are removing features like auto stop/start because they don't have the computer chips to operate car systems. Dealerships are also running low on inventory, with cars spending record low times on the lots.

New to the Channel?
►Watch this:

We upload almost every day, subscribe so you don't miss out!
►Subscribe here:

Click here for more info on joining the Donut Underground!

Shop Donut Merch:

Donut Media is at the center of digital media for the next generation of automotive and motorsports enthusiasts. We are drivers, drifters, and car enthusiasts who love to tell stories.


  • Thanks to Atlas VPN for sponsoring today’s video. Grab AtlasVPN for 1.39$/mo before the deal expires:

    • Yeah blocking the canal wasn’t planned at all

    • Wow, and meanwhile we know US spent money on the WIV to research how to spread Covid from bats to humans. Fauci knew about this, lied in front of congress and politicians stocks increased in value and pharmaceutical companies made a killing after loosing a lot on the bird flu vaccine years ago. Almost seems like this was all planned. Nolan 🤦‍♂️ surrounded by too many Californians to see this.

    • @Michael Alvanos Yup. Chips are just the tip of the iceberg. All those insane lockdowns created this mess.

    • Me thinks that it's more than the chip shortage. Have you heard abouy the Osborne effect?

    • So so unnecessary. All of this was created by politicians and media hysteria. ALL OF IT!

  • it is just in line now

  • Been waiting on an RTX card for 11 months. Help me, nVidia, you're my only hope!

  • lean and agile practices are the way of the future!!!

  • 💚💛💙💲💲💙💙💙💲💰💰💰💰💰💰💰💰💰💰💙💙💙💙

  • If Western nations don't start moving away from their dependence upon China in the wake of the covid wakeup call, then they might as well tap out now. Offshoring will go down as the worst idea in the history of the West.

  • I just paid $24,000 on a 4 year old car with 46,000 miles on it. I feel kinda robbed now hahaha.

  • Correction, the pandemic didn't cause the supply chain issues. Governments did. Right or wrong, it was politicians who created these consequences. Medical strife and stress was cased by Corona, economic strife was caused by bureaucrats.

  • . ...... ....... .. . )

  • So if the car companies pulled the non computer chip models out of the archives they’d make a killing

    • Not really, those cars are basic and aren't fuel efficient because they have no brains to tune fuel injection.

  • Toyota is #1

  • I was luck and got mine.. a 2021 RAV4 AWD

  • Its time to bring back regular distributors and plug-wires.

  • Jokes on them, I'm fine never buying another car again LOL Also 95% of you buying new cars DON'T NEED THEM.

  • Nolan you workn out with James you lookn a lil buff pony

  • "I don't know how the U.S. economy works, much less some sort of self-sustaining one."

  • Honestly its probably for the better since having lots of cars is bad the for environment so having better electric public transport would be the best choice

  • Was not expecting a YT channel about cars to teach me all of the nuances of panarchy theory...

  • why are they shitting on toyota so much even though they are literally explaining why toyota needs to stock up.

  • Crazy question - how come I don't have an option of basic economy level car without any of that technology? I don't need any of it. All I need is to be able to get to work and do shopping yet economy level cars have disappeared all together. Even worse, standard transmission isn't standard any more.

  • God forbid a multi billion dollar company have to sit on inventory, rather than free up that capital to invest it, making even more money. And now they are carrying more inventory after this crisis

    • Well that's the problem with capitalism isn't it? they have to make as much money as they possibly can

  • America has millions of cars that don't even get driven. Fake news wants you to feel bad for auto makers that have been fleecing Americans for decades!

    • Explain

  • Scalpers have gotten sidelined by the companies now... soooo Asus is scalping itself now.

  • Good, all those new cars are garbage anyways

  • I’d love for most of those options to be actually that, an option and not just shoved on every car. Similar to what other countries get where you can buy a base spec for much lower cost and would help with this issue since complicated chips are what’s holding everything up. I know there still would be computer chips just significantly less per car

  • I heart toyota..... :(( I'm seriously looking for new vehicle.. only Toyota.

  • Crazy how that canal got blocked during Covid, of all the times

  • My wife and I just ordered a new Oktavia RS and have to wait up to 9 month, for it to get delivered.

  • i witnessed this first hand. worked at the docks in Washington for Subaru. tons of new cars at the beginning of 2020. nothing left by july.

  • 3:38 So I am not sure how they are made but this little vignette includes the compression of the shocks on the 2 bottom vehicles and it is a beautiful attention to detail. This is just one of so many but the animation team is on point. Great job as always, love the time and effort you all out into these.

  • Are you sure this isn’t an advertisement for Toyota Tacoma

  • Maybe the US will re-think its policy of dumping thousands brand new cars in China that sell for pennies on the dollar there and keep them here. The US auto industry builds these cars knowing they will write them off as a loss and they wont sell but do it to keep the price of cars inflated in the US.

  • Why is it that all the locals dealer where im At. Have tons of new cars.

  • We are in a government over reach pandemic. Nothing more or less.

    • We need a system where the people rule the government and not a few rich politicians and companies lobbying them

  • What "Evergiven" taught everyone is what we knew in IT for a long time - you need a backup system, just in case your primary one gets clogged with a ship.

  • Plandemic, yet tesla remained open

  • Sounds like to me that we need to get back the the basics with vehicles. Just a button and a radio. Said person doesn’t need mood lighting etc. Just my thought

  • can you guys do a up to speed on the buick riviera

  • this is good because when the depression gets going good they wont have all this inventory to deal with at the dealer

  • Hey can you do a video about “Proton” the company that bought Lotus in 90s?

  • Thanks for making me even more happy we bought a new Toyota in Oct. 2020, and a gaming computer in 2019.

  • I feel like a lot of these extras are just gimmicks forced upon you anyways.

  • Man you all should have just shouted out. I live like 30 minutes from the ky racetrack and could have gotten you all b roll footage of the thousands of f-150s stuck out there in the parking lot waiting for these chips. The whole racetrack is still full as of last weekend

  • i got a donut media/autozone ad while trying play this vid LOL and i’ve done an inspection at a toyota plant here in georgia and they don’t buy excess parts at all. the only parts you find are spare tires and maybe a side mirror here and there that is broken or wrong color

  • Our factory used “just in time” production methods. Let’s just saying I’m off today and enjoying a little vacation pay.

  • So glad I ride motorcycles instead of these overpriced pieces of shit.

  • Who cares man . . . I don't need a new car; my Forester is plenty good enough for me 🤔😉👍

  • How am I suppose to by a new car every year if there are no cars to buy?

  • If only they can bring back the basic tech to just get everything rolling again. Maybe do a relaunch of some older models. I would love to have a brand new 4th gen SR5.

  • Jokes on them, we swapped an iPhone with Toyota computer Information download. Works just fine Now runs apple car play perfectly

  • My wife and I were joking that my 22 year old worn out and battered compact truck was probably worth over $5000 again.

  • Love the reload noise every time Nolan fixes his glasses 😂

  • Why are businesses charged to house inventory anyway?

  • i really dont know why everbody wants new cars. i mean maybe try maintaining your old vehicle and drive it as long it drives. humanity is producing enough waste. no need to push car productions even more

  • I wish people would not say that causes like these happened because of covid. Covid19 does not attack inanimate objects, the choice of lockdown was the cause. The government saw a train about to kill one guy changed its direction and now its running over thousands of people.

  • Aaaand there's another boat stuck in the Suez canal

  • But has demand been mostly the same throughout or has it been on the rise during this whole ordeal? That is the other side of the coin.

  • Don't fucking lie kid, This is 100% the cause of China taking over Taiwan, the maker of all processors on the world. Shrill trying to push lies here in this video. China won't give any processors to the US, ALL THE HUWAII

  • Good job outsourcing. Thanks politicians!

  • Why not make more our own country?

    • Smart people are needed

  • I live the animations they do when cars end up like stacked on top of each other and stuff like that. The detail when the suspension compression is added in. That's truely awesome. I will never get bored with this EEpush channel unless they cut those animations out entirely. If they do in unsubscribing but seriously you gotta admit they deserve the credit for animating these the way they do.

  • Maybe you should have thought about these repercussions as you were pushing the CONvid narrative of EVENT 201. everyone was told this was coming but ooooooooooo it's conspiracy theory right? Wake up it's only starting to get worse.

    • You're from r/NoNewNormal?

  • The silicon industry capabilities, in terms of volumes, is decades backward shifted... They were focused on performance and small production, never seen it coming... And the pandemic is not the main culprit, it's the short minded that are seeking quick bucks over long term investments. I've been trying to push the message from many years ago, something was done, but not even close to being enough!

  • Yup I'll be trading my truck in next year or 2 for a pre-owned Silverado 1500 6.2l no afm/dfm

  • This why I drive a work truck model with no features at all but drive n stop lol... Wish cars came in commercial/work form

  • Bring back carburators....problem solved

  • While purchasing a new F150, there were only 3 to choose from. I was given the option to order my own F150, made how I want. But I'd have to wait 3-6 months. Luckily 1 of the 3 in lot, hit almost all my criteria...besides a center console.

  • Toyota makes best cars and truck

  • It is a foolish mistake for a manufacture to buy a critical part from any one supplier. They caused the shortage by stupidity, they made the decision to by from China because of price, now that puts China in the drivers seat for pricing and availability.

  • Getting rid of AFM and Auto stop/start sounds like an upgrade anyways….

  • A) Weather forecasts have become increasingly poor recently, with rain forecasts often off by 80 to 100%, and, B) The reason there are supply chain shortages is because of government. Nothing more, nothing less. We are in a very well-crafted supply chain drought caused by government regulation (especially in the past year).

  • To quote intel "real companies own fabs."

  • Sounds like BS to me it's just an opportunity to gouge the public

  • Just because you mentioned the gpu scalping and shortage issue I’ll give a like and a few views 👍🏻

  • Big bro tax

  • I’m an independent dealer. In December 2020 I had a used 2013 Escalade that I was fixing to take a loss on. In fact, I was fixing to sell everything at a loss. I thought it was all over. That same Escalade that I was going to sell for 13k sold for 22k in March 2021. I sold everything. And I’ve been working 7 days a week since. But now that everything is gone, I can’t buy anything. The prices are just too astronomical and not worth the investment. Don’t think dealers are happy about this either. It was fun for 5 months, but this unprecedented inflation hurts everyone.

  • There are some concerns: why can I come to Apple Store and get an iPhone immediately, but can buy a car - the iPhone doesn't need the chip? Basically, the problem goes way deeper - the modern cars manufactured the way, that people constantly need to buy new ones.

  • Did anyone else get the Officially licensed auto zone add with Jeremiah's voice over before the video. I was like ayooo. They making it up in life

  • If all US cars are "going be electric by 2035"... this will be worse. Plus battery raw materials.

  • basically they created a shortage to raise prices

  • Evergreen incident memes were the best. For a couple of days the world was once again united by that excavator literally and figuratively. ❤️

  • One glaring omission is the fact that when the pandemic hit, the auto manufacturers cut their forecast on future auto sales. They essentially when out to the chip manufacturers and said, "instead of 10,000 units a week for "X" chip, we only need 1,000 units". In semiconductor and especially automotive, the majority of the manufacturers are contact houses. They take work to fill out their capacity. When the auto industry severely cut forecasting, the semiconductor FABs took on other contracts to fill out the capacity. Then the auto industry got caught as the sales increased instead of decreased (as they forecast). They again when out and re-forecast BUT the chip plants were already at capacity from other contract work. The other HUGE factor in auto chips is called 6 sigma. In manufacturing 6 sigma refers to the number of defects that are acceptable. 6 sigma defect rate is 3.4 per million (or a 99.9996% accuracy). You DO NOT want a chip in your car at anything less than 6 sigma, your graphic card chip can be 3 sigma or 93.3% as who cares if your monitor goes blank while playing Minecraft. This severely limits the factories that are certified to produce these types of chips and takes a long time to recover from bad forecasting. FYI, one of the largest automotive chip manufacturers in the world have plants in Arizona and Texas. This isn't about off-shore manufacturing, this is really about the auto industry screwing up and then had to back pedal to try and recover.

  • Sorry, but the virus itself did not make all the silly rules to garner this disruption. Unexpected? Read Rockefeller Lockstep/Great Reset. What a coinkydink, eh?

    • Thanks caveman

  • I work in the fleet department of a car rental company. In this country we need to buy at least a thousand new cars each month, which is quite challenging these days. We still get good discounts from the manufacturers though, up to 50% But we are forced to pay some manufacturers before deliveries.

  • 6:46 seriously Americans do you really need this?

  • I would believe this were true if I did not witness all of the new cars from surrounding car dealerships all being removed and replaced with used cars.

  • Love that shirt. Yotas tacos

  • "Just in case" you need a brand new can still get one because of "Just in case" ordering.

  • In india, Used vehicles are to be demolished after 15 years, big blow against used cars

  • oh my am I happy that I don't live in car dependent America. since I can just go everywhere by my bicycle in Utrecht. total maintenance cost €60 a year

  • We need 90s shitboxes back easy fixes 🤙🏻

  • PC Gamers: Man you know what, I've accepted that I can't get an RTX 3080 and from this day forward I've moved on. I'll just watch this Donut video to get my mind off it and learn about how we ran out of cars. Donut: Scalpers selling a GTX 3080 for $2000 PC Gamers:

  • Just in time is asinine

  • I have been saving for 2 years now for a new Mk7 golf r. This year I was finally ready to take the plunge but prices have gone up by at least 3k... Love the video guys 👍

  • One thing you'd didn't touch on is why we can't "Just make more semiconductors". So I'll do it for you. Basically Semiconductor manufacturing is the most captial intensive and fragile industry that currently exists. I'm serious, manufacturing the Airbus A380 (the largest passenger jet in the world) is extremely easy and cheap compared to manufacturing semiconductors. Another issue is supply is more a game of capacity then amount produced. You have to be more worried about how many chips you could produce rather than how many you are producing. Because you cannot increase capacity without more fabs (a fab is a semiconductor manufacturing plant). The issue is supply is at capacity (i.e, the maximum possible) while demand is 15 fold (15 times the amount of supply). So now you must be thinking, "then build new fabs". It is not that easy. (These numbers are averages btw) First of all, a single fab costs 10 billion USD out of pocket (not including any infrastructure or tax or shipping (because you need to build on site, so you need to ship stuff to the site) or operating costs, etc.). Not Only does it take 3 years to build, and another year before it is fully operational but also if you don't have any supporting infrastructure it can take upwards of 5 years. Some megafabs have taken 10+ years to construct and become fully operational. So you will spend 10 billion USD today, but it will take 4 years for it too become usable. Because it is such an expensive and long term process to build new plants, manufacturers have to ask whether or not the demand is temporary or if it will still exist 5, 6 years from now. TSMC the largest of the 4 semiconductor manufacturers, spent 36 billion USD on captial expenditure (new factories). In one year, TSMC spent more on factories (specifically 2) then Airbus did across the entirety of the A380 program, a program that has lasted for about 23 years.

  • I guess it's a good thing that I only buy used vehicles and that I actually prefer the ones from the late 90s and the early 2000s to the newer ones . And where I live in Canada there are millions of cars for sale at discount because they made worry more than they could sell . I can't imagine it's that much different across the line in the US . The only car I can think of right now that would be hard to get is the Corvette . And apparently even that's easier to get in Canada than it is in the United States .

  • Do you not see that China is the only people benefiting from the pandemic and the world problems as a whole. Their war with the West through economic means is working like clockwork.

    • @Rob lol because they have the means and last time I checked 911 may have had something to do with it. (Were you born then?) China has nothing but the fact that the world stupidly buys everything from them and have the ability to hold the world to ransom because of economics.

    • USA is the one launching wars though.

  • Hahahahaha "only 28.99"

  • I am still baffled how the constant mass production of vehicles is allowed and manufactures just ignoring the millions of vehicles littering the world yet I am shouted at for not using a paper straw?..

  • Things need to open up and get people back to work. Globally