The shortage of automotive chips is becoming more and more serious. Automakers in many countries have announced that they will stop some production. This phenomenon is likely to continue until this fall. On Friday (15th), major U.S. automotive manufacturers urged the US government to help solve the shortfall of automotive chips.
By General Motors (GM-US), Ford (F-US), Fiat Chrysler (FCA) formed the American Automobile Policy Committee (AAPC), which lobbied the US Department of Commerce and President-elect Biden on Friday to request the US to put pressure on the Asian semiconductor industry and redistribute the proportion of orders for consumer electronics products. Indispensable automotive chip.
AAPC President Matt Blunt said on Friday: “We have asked the U.S. government to help us find an answer, because before the problem is resolved, the suspension of production at the car plant will have a negative impact on the U.S. economy.”
Due to the shortage of automotive chips, Ford’s Kentucky plant has suspended production for a week this week. It also announced that a German plant would suspend production for one month. Fiat Chrysler also had to temporarily suspend production in Mexico and Canada. It is expected that there will be more discontinuation news in the coming weeks.
The outbreak of the epidemic led to a sharp drop in automotive demand in the first half of 2020. At that time, automakers temporarily cut orders for automotive chips, and foundries also moved production capacity to the mobile phone and computer markets.
However, automakers and supply chains said that these foundries prioritize consumer electronics products because of higher profits and the trend of home office work brought about by the outbreak has also caused related demand to surge.
Blunt said: “Even if the shortage issue is resolved today, it will continue to be affected throughout the quarter. It is currently known that the shortage of automotive chips in the first half of the year will continue. If the solution takes longer, the greater the possibility of postponing to the third quarter.”
Blunt said that since it takes at least three months for foundries to increase production, the impact on auto factories will continue until 2021.
Blunt said: “There are many experts in the Biden administration with automotive knowledge. Most people know the importance of the automotive industry to the United States. Therefore, we hope that after Biden takes office as president, he will give priority to helping us solve problems.”
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