As we’ve covered extensively in recent months, automotive production has been severely impacted by the global semiconductor chip shortage. As of right now, it doesn’t seem like this issue will be resolve until Q3 at the earliest, so automakers are forced to do the best they can with what chips they are able to secure, which in Ford’s case are being used in its most profitable vehicles like the 2021 Ford F-150. Meanwhile, the Biden administration has been considering its options to help get the supply chain back on track as well.
Regardless, Ford F-150 production has still been shut down on three different occasions, and both President Joe Biden and Ford CEO Jim Farley have publically called for more domestic chip production to prevent this shortage from happening again. Now, two top Biden administration aides will host a meeting to discuss these supply chain issues with both automakers and chipmakers.
White House press secretary Jen Psaki said that Biden’s security adviser, Jake Sullivan, and economic aide, Brian Deese, will host the meeting on April 12th. The goal is to conduct a broad policy review on the issue and determine what, if any action, can be taken to help get the supply chain back up and running.
As we reported earlier today, Ford and its suppliers are already rethinking the way they approach the supply chain, and both are ditching the tried-and-true just-in-time approach to inventory and production by stocking up on critical parts and components. Additionally, Ford has begun buying specialized chips from chipmakers rather than going through middleman suppliers in an effort to speed up the process of receiving the much-needed components.