Menu
Log in


Governors from 8 states with car factories urge Biden to help with semiconductor chip shortage

Friday, March 05, 2021 6:01 PM | Anonymous
A bipartisan group of eight governors from U.S. auto states have urged President Joe Biden to do more to press semiconductor firms to address a global shortage of automotive chips that has cut some vehicle production.
The governors of Michigan, Indiana, Ohio, Kentucky, Kansas, South Carolina, Alabama and Missouri asked Biden in a Feb. 26 letter to join foreign governments in urging semiconductor and wafer companies to expand production and "temporarily reallocate a modest portion of their current production to auto-grade wafer production."
Michigan Gov. Gretchen Whitmer, who led the effort to get other governors to sign, said she was urging Biden "to do everything in his power and to leave no stone unturned to protect auto jobs throughout the supply chain at risk because of this shortage."
The White House did not immediately comment, but auto executives met with White House officials on Feb. 24 and discussed the issue. Lawmakers have also urged the White House to pressure chip manufacturers to boost auto chip supply.
Biden said he would seek $37 billion in funding for legislation to supercharge U.S. chip manufacturing and he signed an executive order aimed at addressing the global semiconductor chip shortage.
Automakers hit by the shortage include General Motors, Ford, Volkswagen, Toyota, Nissan, Stellantis and Subaru.
Ford said a lack of chips could cut production by up to 20% in the first quarter and lower the company’s adjusted earnings by $1 billion to $2.5 billion.
GM said the shortage could shave up to $2 billion from 2021 profit as it has been forced to cut output at factories in the U.S., Canada, Brazil and Mexico.
A shortage of auto semiconductor chips could impact nearly 1 million units of global light vehicle production in the first quarter, data firm IHS Markit reported.
 


Chicago Automobile Trade Association
18W200 Butterfield Rd.
Oakbrook Terrace, IL 60181 
(630) 495-2282

EMAIL US

Copyright © Chicago Automobile Trade Association.

Powered by Wild Apricot Membership Software