The ongoing global microchip shortage has had a profound effect on General Motors and the broader auto industry, curtailing production and limiting options for customers. Now, U.S. Commerce Secretary Gina Raimondo will meet with leaders of the U.S. auto industry to address the shortage.
According to a recent report from Reuters, Raimondo will meet with representatives from General Motors, Ford Motor Co., and Stellantis NV on May 20th.
“We need to need to get back into the business of making more chips in America,” Raimondo told MSNBC last week. “And the supply chain issues are very real.”
Raimondo also said that the ongoing shortage resulted in the loss of 27,000 auto sector jobs last month.
On April 12th, President Biden held a summit with executives and advisors from various auto and semiconductor chip manufacturing companies to discuss possible solutions to the shortage. General Motors CEO Mary Barra participated virtually, as did Ford’s Jim Farley and Stallantis’ Carlos Tavares. The Biden administration has endorsed the CHIPS for America Act, which outlines $50 billion in investments in chip manufacturing and research.
General Motors first voiced its concern over the chip shortage in January. It’s estimated that production cuts stemming from the shortage have resulted in nearly 80,000 units of missed production for GM through North America, with losses at numerous facilities, including the GM CAMI plant in Ingersoll, Ontario, the GM Fairfax Assembly plant in Kansas, and the Lansing Grand River plant in Michigan, among others.
As GM Authority covered previously, General Motors is currently stockpiling unfinished vehicles waiting for additional chips to arrive. The “build-shy” strategy is intended to keep manufacturing plants operational as the critical components trickle in for finalization, with tens of thousands of pickups, SUVs, and vans currently parked at facilities in the U.S. and Mexico.
It’s estimated that the microchip shortage could eat into GM’s profits by some $2 billion.
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Comments
gm employees must be loving going fishing at almost full pay.
Not sure what DC can do. They couldn’t run a house of irruption on an aircraft carrier.
nothing to worry about. no more dangerous than the common flu.
What?
Elon isn’t going to save the day.
Stupid Mary Barra
I read that Tesla production is all offline, too.
This is really hilarious, GM knew about the shortage and others 5 months ago and just now the president is thinking about it? What the heck has FEMA done considering that they have a 10 billion dollar budget a year to address this issue, yes I know they’re more concerned when there’s a hurricane and people need water but right now all they’re doing is pushing paper. If the armed forces was smart they would have thrown a few billion dollars into 5 or 10 small foundries that they could control across the US for chips but that would mean that someone would have common sense in the government it takes several years to put up a building and get the machinery to start doing chips so nothing that the government does now will have any effect for at least one to two years. We have a real bunch of do-nothings as usual
When will Corporate America learn. Will you depend on foreign countries for critical parts. You are looking for problems. China, Japan, Mexico and Korea all want our economy to fail. Our country is imploding. Like Trump preached. Built it in
America. Buy American. Its thats simple!
As HE imported all of his products, or please name one that he made in the US of A.
Just think what will happen when China takes over Taiwan where the most advanced chips for drones, fighter jets, and smart bombs are made. Heaven help us when Commie Harris takes over the White House.
I agree with almost everything posted today, when I tried to rate the comments they would change the counts downward! So I zeroed them all out in trying.
easier said than done when corporate greed is looking for the cheapest labor they can find
JoBi and KaHa don’t want America to succeed. Their plan is to force even more business to move out of the country by raising taxes on them to pay for their over-the-top stimulus spending sprees. We’re in serious trouble my friends, and the current people in power will only make things worse. Anytime you get the federal government involved trying to fix something, it will end up costing taxpayers 3 to 5 times more money, and create more bureaucratic restrictions, control, and let’s not forget … all the extra BS that comes with it!
Lol..that should really boost gms moral.
Mary Berra needs to go. And take her electrification with her.
US Automotive manufacturers are being held hostage in the pipeline and we need to put a stop to this. As a previous LED patient designer and manufacturer, the chips can be built right here in the US. I just need to know the specific types that we are short on to produce them.