US-based independent auto group The Alliance for Auto Innovation expects US car output to reduce by 1.28 million units in 2021 due to the ongoing global semiconductor chip shortage. The alliance also reiterated that operations might be disrupted for at least another six months.
President Joe Biden had called for a $37 bn funding package to boost domestic chip production and a review of the crisis and the alliance has urged the US Department of Commerce to set aside a portion of this funding to build new semiconductor chip manufacturing units across the US, according to media reports on Tuesday.
Domestic car production and sales were up across all major producers in Q1 2021. However, many have had to suspend production in March following the current chip shortage and are likely to feel its effect in the second quarter.