Big wigs from the auto industry are expected to attend a summit Monday, organized by the Biden administration to tackle the current semiconductor shortage that has been hounding several industries. The shortage has been so far negatively affected productions at several auto plants not only in the United States, but also in other parts of the world.
CEO Summit On Semiconductor And Supply Chain Resilience
The White House summit -- dubbed as the “CEO Summit on Semiconductor and Supply Chain Resilience” – will count executives from approximately 20 major companies in the US. Those who have confirmed their attendance, Reuters reported, include Mary Barra (CEO, General Motors) and Jim Farley (CEO, Ford). Stellantis NV, parent of Chrysler, will also send an executive to the summit.
Also joining are executives from PACCAR, NXP and Taiwan Semiconductor Manufacturing Company (TSMC), which is considered are the largest contrast chip maker in the world. Other companies taking part in the summit include Alphabet (Google parent), AT&T, Dell Technologies, HP Cummins, Intel Corp, Medtronic, Micron, Northrop Grumman, and Samsung.
Meanwhile, the delegation from the US government will be led by White House National Security Advisor Jake Sullivan, National Economic Council Director Brian Deese and Commerce Secretary Gina Raimondo.
Production Downtimes At GM And Ford Plants
Carmakers have been adjusting production especially involving less profitable vehicles. For instance, GM cancelled some truck weekend production shifts at its Fort Wayne Assembly plant in Indiana, and at its Flint assembly plant in Michigan. Downtimes will also continue or be implemented at GM's Spring Hill, Lansing Delta Township, Lansing Grand River Assembly, CAMI Assembly (Canada) and Fairfax Assembly plants.
Ford will also implement downtimes or reduced shifts at assembly plants in Chicago, Flat Rock, MI, Kansas City, and Avon Lake, Ohio. According to Reuters, Ford it will operate more factories in the summer to make up for lost production.
Production Disruption Happening Globally
US carmakers aren't alone though. South Korean carmaker Hyundai Motor Co will suspend production for two days starting Monday at its Asan factory. Production at its massive Ulsan site is currently idled. Porsche AG, meanwhile, announced the possibility of adjusting production due to the chip shortage, Handelsblatt reported.
Global production is expected to be remain disrupted in the six months due to the global semiconductor shortage.
Source: Reuters