Get 40% Off
🤯 This Tech Portfolio is up 29% YTD! Join Now to Get April’s Top PicksGet The Picks – Just 99 USD

Eight U.S. auto state governors urge Biden to press semiconductor firms on chip shortage

Published 2021-02-26, 12:49 p/m
Updated 2021-02-26, 03:31 p/m
© Reuters. U.S. President Biden signs an executive order on the economy at the White House in Washington

© Reuters. U.S. President Biden signs an executive order on the economy at the White House in Washington

By David Shepardson

WASHINGTON (Reuters) - A bipartisan group of eight governors from U.S. auto states on Friday urged Democratic U.S. President Joe Biden to do more to press semiconductor firms to address a global shortage of automotive chips that has cut some vehicle production.

The governors of Michigan, Indiana, Ohio, Kentucky, Kansas, South Carolina, Alabama and Missouri asked Biden in a letter to join foreign governments in urging semiconductor and wafer companies to expand production and "temporarily reallocate a modest portion of their current production to auto-grade wafer production."

Michigan Governor Gretchen Whitmer, a Democrat who led the effort to get other governors to sign, said she was urging Biden "to do everything in his power and to leave no stone unturned to protect auto jobs throughout the supply chain at risk because of this shortage."

The White House did not immediately comment, but auto executives met on Wednesday with White House officials and discussed the issue. Lawmakers have also urged the White House to pressure chip manufacturers to boost auto chip supply.

Biden said on Wednesday he would seek $37 billion in funding for legislation to supercharge U.S. chip manufacturing and signed an executive order aimed at addressing the global semiconductor chip shortage.

Automakers hit by the shortage include General Motors Co (NYSE:GM), Ford Motor (NYSE:F) Co, Volkswagen (DE:VOWG_p) AG, Toyota Motor Corp, Nissan Motor Co, Stellantis and Subaru Corp.

Ford said a lack of chips could cut production by up to 20% in the first quarter and lower the company's adjusted earnings by $1 billion to $2.5 billion.

GM said the shortage could shave up to $2 billion from 2021 profit as it has been forced to cut output at factories in the United States, Canada, Brazil and Mexico.

© Reuters. U.S. President Biden signs an executive order on the economy at the White House in Washington

A shortage of auto semiconductor chips could impact nearly 1 million units of global light vehicle production in the first quarter, data firm IHS Markit said.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.