Apr 2021

Automakers Call for More U.S. Help on Microchips

Major automakers and suppliers pressed Congress again on Tuesday to address the global shortage of semiconductor chips that has curtailed auto production around the world. A U.S. Senate subcommittee heard testimony from auto industry groups urging action to address production of “mature node” chips. The industry backs proposals to spend tens of billions of dollars to boost U.S. semiconductor production and new tax incentives to help chip companies offset costs of creating new lines within existing facilities.

Automakers have warned the shortage could result in 1.3 million fewer vehicles built this year in the U.S. and disrupt some production for at least another six months. Volkswagen’s Mexico unit is planning production stoppages of two of its models next month due to ongoing global chip shortages, the automaker said Tuesday. Volkswagen will suspend output of the compact Tiguan crossover, from May 6th to May 16th, and the compact Jetta sedan, from May 3th to May 19th, the company said.