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January 17, 2021 03:34 pm

A 'Debilitating' Shortage of Computer Chips is Closing Auto Factories Worldwide

"American automakers are asking the U.S. government to help solve a debilitating shortage of computer chips that is closing auto factories worldwide and could restrict production until the fall," reports Bloomberg:The American Automotive Policy Council — a lobbying organization for General Motors Co., Ford Motor Co. and the U.S. operations of Fiat Chrysler Automobiles NV — is agitating with the U.S. Commerce Department and the incoming administration of President-elect Joe Biden to press Asian semiconductor makers to reallocate output away from consumer electronics and build essential chips for cars. "We have requested that the U.S. government help us find a solution to the problem because it will diminish our production and have a negative impact on the U.S. economy until it's resolved," Matt Blunt, president of the AAPC, said in an interview Friday. "We are not primarily concerned with where blame may lie for this global shortage, if it lies anywhere, but we just want a solution. And the solution is more automobile-sector semiconductors." The shortage forced Ford to shut a sport-utility vehicle factory in Kentucky this week, and it is closing a small-car plant in Germany for a month. Fiat Chrysler has had to temporarily stop output at plants in Mexico and Canada. More production is expected to be idled in the coming weeks.

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