WASHINGTON: A U.S. auto industry group on Monday urged the government to help as it warned the global semiconductor shortage could result in 1.28 million fewer vehicles built this year and disrupt production for another six months.
Some funding should"be used to build new capacity that will support the auto industry and mitigate the risks to the automotive supply chain evidenced by the current chip shortage," the group's chief executive, John Bozzella, wrote. The group 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.Automakers have been hit particularly hard by the global chip shortage after many cancelled orders when auto plants were idled during the coronavirus pandemic.