Ford CEO Jim Farley recently participated in a White House summit with other automakers, chipmakers, President Joe Biden, and members of Biden’s staff addressing the global microchip shortage. In that meeting, Biden promised that legislation addressing the issue and congression funding to support production were on the way. However, as Ford and the rest of the industry continue to suffer from massive production cuts, automakers and suppliers are poised to once again ask the Senate for help.
The Senate will hear testimony from auto industry groups, including the Alliance for Automotive Innovation, which will urge the government to take action to address the global microchip shortage. The industry backs proposals to spend billions of dollars to boost U.S. semiconductor chip production, as well as tax incentives that will help chip manufacturers offset the costs of creating new production lines.
“There is an undeniable need to expand semiconductor capacity in the U.S. to meet the growing demand within the auto industry, as well as other sectors across the economy,” John Bozzella, head of the Alliance for Automotive Innovation, said in the testimony, which was seen by Reuters. Bozzella previously noted that this funding “will support the auto industry, as well as other sectors that rely on mature nodes – including defense, medical, and critical infrastructure.” President Biden’s proposed infrastructure plan includes $50 billion for chip production and research.
Meanwhile, some experts expect the chip shortage to last at least through the end of the year. Ford has been forced to cancel its summer shutdowns and idle most of its North American and European plants in recent weeks, leading to massive production cuts. Most recently, AutoForecast Solutions estimated that last week alone, Ford’s production took a 45,500 vehicle hit – more than half of the estimated 80,000 total units removed from North American production.
Globally, AutoForecast Solutions estimates that 2.07 million vehicles have been removed from production schedules since the onset of the chip shortage, which skyrocketed from last week’s estimate of 1.68 million units. The firm now projects a total of 3.12 million units may ultimately be affected by the time the supply chain is fixed.
We’ll have more on the global microchip shortage soon, so be sure and subscribe to Ford Authority for non-stop Ford news coverage.
Comments
This is not the Senate’s job.
I agree, however these are unprecedented times and you know the saying…. calls for unprecedented actions. The administration seems to understand this. What is more alarming to me is how many Americans seem more interested in populist politics rather than solving problems for the American worker and the country. If you are not leading by example, you will be following….. U.S. prestige is not what it used to be in the world.
I guess shipping American Jobs out of the US, to china and mexico (for example) is the administrations understanding? when hunter biden is given a Billion dollars to “manage” from China, I guess this is the example you’re referencing? With millions of illegals pouring into the US, the American worker is not being helped, in fact the value of their labor goes down. This may be why some Americans (those that pay taxes) are concerned, as politics is not solving problems, but creating them.
With all due respect…. I was not talking to you. However, from the tone of your comments it would appear you have a real chip on your shoulder. It’s too bad as it makes it hard to take anything you say seriously. For a change of pace, you might try to look forward occasionally with a view to being part of the solution rather than being the problem. WE are talking about micro chips here, remember?
Your tone is funnneee, for a guy that does not seem to understand that we are talking about chips-FOR American Car MFG, not running down the United State, as you did with your comment, “U.S. prestige is not what it use to be..”. Once you are called out, as in old hunter bidens, billion dollars to manage from commie china, you suddenly want to talk about chips, and nothing but chips. Are you okay? Are you in one of those states that allows and encourages drug use???
The bottom line, as long as we don’t bring back mfg to the US, we will suffer, albeit pharmaceuticals or chips. Flooding the US with illegals with no known covid vaccine, or criminal history etc. can’t in anyone’s universe, be good for the US worker, get a grip.
Kinda like leaving the chicken coop door wide open for the fox.
The Senate ‘fix’ something/anything? I get it, another oxymoron.