Tuesday, 06 April 2021 13:13

Automakers Could Make 1.3 Million Fewer Vehicles Because of Semiconductor Shortage

Written by Todd Spangler, Detroit Free Press


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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 Innovation said a recent survey done of automakers and supplies indicated the shortage could hurt auto production for another six months.


"The chip shortage has forced a number of automakers to halt production and cancel shifts in the United States, with serious consequences for their workers and the communities 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 Stellantis.


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 letter was in response to that review. Because of last year's closing of auto manufacturing facilities due to COVID, semiconductor suppliers, most of which are based overseas, moved production into other types of semiconductors needed for personal computers and other goods. Semiconductors are integral to multiple systems on vehicles.


"We have been conducting 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 projections indicate...

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