American automakers want government support in chip shortage

The American automobile industry wants the government in Washington to help solve the chip shortages in the industry. A lobby organization of automakers Ford, General Motors and the American branch of Fiat Chrysler wants the government to put pressure on Asian chipmakers to make more chips for cars and not just focus on consumer electronics.

According to the American Automotive Policy Council (AAPC) lobby group, if there are not enough chips available, it will have a negative impact on production and thus the US economy. โ€œWe are not concerned who is to blame, if there is anyone to point out. We just want a solution. And that solution is more chips for the automotive sector,โ€ says AAPC foreman Matt Blunt.

Because of the strong demand for chips for smartphones, laptops and game consoles, for example, caused by the fact that many people have to stay at home because of corona and work there, chip companies give priority to this. As a result, they have difficulty in delivering enough chips to the automotive industry. There are also distribution problems due to the stricter lockdowns.

More profit

According to automakers, the chip companies also opt for chips for mobile phones, laptops and game consoles because there is more profit to gain from them. Chip companies, in turn, point out that automakers themselves reduced their orders when the coronacrisis struck and that they are now experiencing the consequences. It will take at least three months before chip makers can increase their production of the chips for the automobile sector again.

Ford temporarily shut down a factory in the US and one in Germany due to a lack of chips. Fiat Chrysler did so with factories in Canada and Mexico and other automakers like Volkswagen cut their production.