In recent weeks, more than one automaker and industry lobby group has expressed concerns over a potential chip shortage, all due to the fact that Chinese officials recently barred Nexperia from exporting those parts to other countries following a decision from the Dutch government to seize control of the company amid national security concerns. Trouble is, Nexperia is one of very few companies that makes simple chips used for functions like power windows and windshield wipers. Now, Ford CEO Jim Farley has admitted that The Blue Oval may be impacted by this looming chip shortage, too.
"We see this as a political issue. We're working with U.S. and Chinese administrations," Farley told investors during Ford's Q3 earnings call. "I was in DC yesterday, actually, and this issue is top of mind for every official we met in the U.S. government. They're very well aware of it. Working to resolve it. These are fairly common parts, mature nodes, semi-components like diodes and transistors. We're maximizing our buy of these components. We got really good at doing that during the chip crisis."
"I think all the OEMs are doing the same thing. At the moment, the run-out dates look very close to the date when we may see a resolution. It's an industry-wide issue. A quick breakthrough is really necessary to avoid fourth-quarter production losses for the entire industry. That's all I'm willing to say at this point."
Farley doesn't seem to be too terribly concerned about this potential chip shortage, given his comments, but that hasn't been the case with others as of late. As Ford Authority previously reported, the Alliance for Automotive Innovation released a statement noting that if "the shipment of automotive chips doesn’t resume - quickly - it’s going to disrupt auto production in the U.S. and many other countries and have a spillover effect in other industries."
Days later, another industry group - the Motor & Equipment Manufacturers Association (MEMA) - warned that we're only around two to four weeks away from seeing the looming chip shortage having "significant impacts" on U.S. automotive plants, saying a "handful of these chips can literally stop production of a full assembly plant."
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