As the automotive industry continues to struggle with production issues stemming from the ongoing semiconductor chip shortage, President Joe Biden‘s administration recently arranged a meeting with automakers and chipmakers that is scheduled to take place next week. Now, Biden has revealed that the U.S. Senate is preparing to introduce new legislation that addresses the chip shortage as well.
“We’re working on that. (Senate Majority Leader) Chuck Schumer and, I think, (Senate Republican Leader Mitch) McConnell are about to introduce a bill along those lines,” Biden said while discussing his proposed infrastructure plan.
In the meantime, the White House is scheduled to host a virtual summit on Monday that will include a number of senior U.S. automotive executives, including Ford CEO Jim Farley and General Motors CEO Mary Barra, along with Biden administration officials Brian Deese and Jake Sullivan.
Earlier this week, Ford-backed interest group Alliance for Auto Innovation warned that if the government does not intervene and dedicate funding to a bill that proposes expanded semiconductor chip production in the U.S., the chip shortage could disrupt production for another six months and result in 1.28 million fewer vehicles being built this year.
Just a few weeks ago, Farley predicted that the crisis would be over by the start of Q3. Meanwhile, FoMoCo and other automakers are currently adjusting their supply chain strategies to help mitigate the effects of the shortage, though Ford continues to face major production challenges. Just last week, the Dearborn-based automaker had nearly 44,000 vehicles removed from production schedules, including 13,700 Ford F-150 pickups at the Ford Dearborn Truck Plant and 10,400 at the Ford Kansas City Assembly Plant.