WASHINGTON: U.S. auto industry group on Monday urged government to help as it warned the world semiconductor shortage it could generate 1.28 million fewer vehicles this year and alter production for another six months.
The U.S. Department of Commerce should devote some of the funding to a bill to expand the U.S. semiconductor production to the needs of the automotive sector, the Alliance for Auto Innovation said in written responses to a government-initiated review.
President of the United States Joe Biden in February it ordered several actions by the federal agency to address the chip crisis and is also seeking $ 37 billion in funding for legislation to overload chip manufacturing in the United States.
Some funding should be used to generate new capabilities that support the car industry and mitigate the risks to the car supply chain evidenced by the current shortage of chips“, wrote the group’s chief executive, John Bozzella.
The group said the US government could specify “a specific percentage, which is reasonably based on the projected needs of the automotive industry, which will be allocated to facilities that support the production of high-quality automatic chips. ‘somehow’.
The group represents nearly every major automaker with factories in the United States, including General Motors Co., Ford Motor Co., Volkswagen AG, Toyota Motor Corp., and Hyundai Motor Co.
Automakers have been particularly hard hit by global chip shortages after many orders were canceled when car plants were idling during the coronavirus pandemic.
When they were ready to resume production, they found that chip makers were busy meeting orders from the consumer electronics industry that, as seen, demanded top-quality devices, both for work and for at leisure, it grew as people spent more time at home.
Most car manufacturers have been hit by the shortage. In recent announcements, Ford said last week it would reduce production at seven U.S. assembly plants, while Kia Motors said it would reduce production days in Georgia by two days.