Home News The US Secretary of Commerce plans to hold a meeting to discuss production cuts and layoffs due to chip shortage

The US Secretary of Commerce plans to hold a meeting to discuss production cuts and layoffs due to chip shortage

by Ashish

The US Secretary of Commerce Gina Raimondo planned to hold a meeting with the senior U.S. auto industry leaders and others on May 20 to discuss the shortage of semiconductors that has caused the problem of reduced production.

According to sources, the meeting will include General Motors, Ford Motor Company, and Stellatis NV. Raimondo told Microsoft National Broadcasting Corporation (MSNBC) last Friday, “We need to make more chips in the United States. Supply chain issues are very real.”

She said the chip shortage was one of the reasons for the 27,000 job cuts in the auto industry in April. The US Department of Commerce did not immediately respond to a request for comment.

Join us on Telegram

Last Friday, a group representing American automakers, the American Federation of Auto Workers, and auto parts organizations recommended to Congress: “The United States should give priority to the production of semiconductors needed to assemble cars.” This will ensure that automakers receive fairness. Chip share to meet consumer demand. ”

Last month, Ford warned that the shortage of chips could reduce production in the second quarter of 2021 by half, causing losses of about 2.5 billion U.S. dollars and reducing production by about 1.1 million vehicles. At the same time, General Motors has extended the shutdown status at several North American plants due to chip shortages.

On April 12th, US President Biden convened semiconductor and automotive industry executives to discuss crisis solutions. He used $50 billion to fund chip manufacturing and research in the United States.

(Via)

Related News