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.