US Auto Industry Asks Government For Help As It Warns Of Impact Of Chip Shortage By Reuters

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2/2 © Reuters. A worker builds a 2020 Ford Explorer car at Ford’s Chicago Assembly Plant 2/2

By David Shepardson WASHINGTON (Reuters) – A US auto industry group on Monday urged the government to help, as it warned that a global semiconductor shortage could result in 1.28 million fewer vehicles built this year and disrupt production for another six months. The U.S. Department of Commerce should dedicate a portion of the funds in a bill to expand U.S. semiconductor production to the needs of the automotive sector, the Alliance for Automotive Innovation said in written responses to a government-initiated review. US President Joe Biden in February ordered several actions by the federal agency to address the chip crisis and is also seeking $ 37 billion in funding for legislation to boost chip manufacturing in the United States. Some funds should “be used to build new capacity that will support the auto industry and mitigate risks to the auto supply chain evidenced by the current chip shortage,” wrote the group’s chief executive, John Bozzella. The group said the US government could specify “a particular percentage, which is reasonably based on the projected needs of the auto industry, for facilities that will support the production of automotive-grade chips in some way.” The group represents nearly every major automaker with factories in the United States, including General Motors Co (NYSE :), Ford Motor (NYSE 🙂 Co, Volkswagen AG (OTC :), Toyota Motor (NYSE 🙂 Corp and Hyundai Motor Co. have been particularly hard hit by the global chip shortage after many orders canceled when auto plants were idle during the coronavirus pandemic. When they were ready to resume production, they realized that chipmakers were busy filling orders from the consumer electronics industry which, as seen in the demand for premium devices, both for work and for business. leisure, skyrocketed as people spent more time at home. Most automakers have been hit by the shortage. In recent announcements, Ford said last week it would cut production at seven North American assembly plants, while Kia Motors said it would cut two days of production in Georgia.

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