cars

Chip issue nets bipartisan support


“It’s always good when the government takes auto industry concerns seriously and will step up to the plate to help,” said Kristin Dziczek, senior vice president of research at the Center for Automotive Research in Ann Arbor, Mich.

But the semiconductor supply chain crisis is a “big and complicated issue,” she told Automotive News. “I don’t know if we solve everything, and it’s going to take a while to solve everything. This isn’t just an easy fix.”

Ford last week extended downtime at a number of key assembly plants, including two more weeks for the F-150 — the centerpiece of the top-selling pickup line in the U.S. — because of the chip shortage.

Nissan Motor Co. also said it was adjusting production at its two U.S. vehicle assembly plants.

The supply shortage could result in roughly 1.28 million fewer vehicles built this year and disrupt production for another six months, according to a survey by the Alliance for Automotive Innovation, a group that represents most major automakers in the U.S.

The alliance and other industry groups have urged the government to dedicate a portion of funding in the CHIPS for America Act to auto sector needs.

“The time to act is now,” Bill Long, CEO of the Motor & Equipment Manufacturers Association, said in a statement.

“Congress must move forward to provide funding for the CHIPS Act but must also set aside a portion of that funding for semiconductor production that is vital to the U.S. motor vehicle industry.”



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