Auto Industry Calls for Government Help

As previously mentioned in our “How a Pandemic Affected the Auto Industry” blog, the auto industry has slowed down a lot since the start of the Coronavirus. Decreased production has been due to the minimal employees in a factory, but more importantly a shortage of supplies. The industry is now calling for help as the chip shortage continues.

Early this year, a shortage of microprocessing chips hit factories and halted production. Microprocessors are necessary for vehicle safety, lower fuel consumption, lower engine pollution, and increase the reliability of your car. While everyone was stuck at home, companies began using the microprocessors for phones, computers, tablets, and other devices that people were looking for, leaving the auto industry short of them.

A group in the industry has recently reported that the global shortage could result in 1.28 million fewer vehicles produced this year and can prolong production for an additional six months. The group is now suggesting that the U.S. Department of Commerce should set aside a portion of funds in a recently proposed bill to expand U.S. semiconductor production to auto sector needs

In February, U.S. President Joe Biden ordered several Federal agency actions to address the chip shortage. Additionally, he is now also seeking $37 billion in funding for legislation to supercharge chip production.

The group requesting help represents nearly all major automakers with factories in the United States including General Motors Co, Ford Motor Co, Volkswagen AG, Toyota Motor Corp, and Hyundai Motor Co.

While the shortage can delay the purchasing of new vehicles for consumers, there are still plenty of cars, used and new, available for purchase across the country. While looking, it’s important to look at safety features to keep the roads, and yourself safe.


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