4
March - April 2021
Automakers Could Make 1.3 Million Fewer Vehicles Because of Semiconductor Shortage Wri en by Todd Spangler, Detroit Free Press A trade group that represents automakers said a semiconductor shortage caused by COVID-19 could result in 1.28 million fewer vehicles being made in the U.S. this year. In comments sent April 5 to the Commerce Department, the Alliance for Auto Innova on said a recent survey done of automakers and supplies indicated the shortage could hurt auto produc on for another six months. “The chip shortage has forced a number of automakers to halt produc on and cancel shi s in the United States, with serious consequences for their workers and the communi es in which they operate,” wrote John Bozzella, the group’s president and CEO. The Auto Alliance represents most major automakers doing business in the U.S., including General Motors, Ford and Stellan s. President Joe Biden in February directed the Commerce Department to review risks in the supply chain, including the pressures put on industry by a global semiconductor shortage. Bozzella’s le er was in response to that review. Because of last year’s closing of auto manufacturing facili es due to COVID, semiconductor suppliers, most of which are based overseas, moved produc on into other types of semiconductors needed for personal computers and other goods. Semiconductors are integral to mulple systems on vehicles. “We have been conduc ng anonymized surveys of our member companies since the onset of the chip shortage,” Bozzella wrote. “The most recent survey was conducted within the last couple of weeks and, unfortunately, the high-end projec ons indicate... ...an even more significant impact to United States auto produc on than was projected in previous surveys.” As part of his le er, Bozzella also urged some por on of funding be used to boost the domes c produc on of semiconductors dedicated to making those used in automobiles. “This could be accomplished by, for example, specifying that a par cular percentage---that is reasonably based on the projected needs of the auto industry---be allocated for facili es that will support the produc on of auto grade chips in some manner,” he said. Early this year, Congress passed legisla on allowing for funds to be used to incen vize manufacturing, but the money hasn’t been appropriated yet. Biden has called for $37 billion to be commi ed to boos ng semiconductor produc on. Source: Detroit Free Press h ps://www.freep.com
Mopar Masters Guild Magazine
