Biden meets today with executives on chip shortage as U.S. auto industry feels the pain

cnbc2021-04-12

KEY POINTS The White House is holding a virtual CEO summit on Monday where President Joe Biden is scheduled to meet with executives from the auto, tech, biotech and consumer electronics industries. ...

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BpchuA
·2021-04-13
Solid
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ET88
·2021-04-13
Buy Chip chip.
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Raychris
·2021-04-12
Yes
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- Kristyng:
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  2021-04-13
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Yongshunn
·2021-04-12
Get it done Biden
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mcwood
·2021-04-12
[得意]
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}\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nBiden meets today with executives on chip shortage as U.S. auto industry feels the pain\n</h2>\n\n<h4 class=\"meta\">\n\n\n2021-04-12 22:42 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://www.cnbc.com/2021/04/12/biden-meets-today-with-executives-on-chip-shortage-as-us-auto-industry-feels-the-pain.html><strong>cnbc</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>KEY POINTS\n\nThe White House is holding a virtual CEO summit on Monday where President Joe Biden is scheduled to meet with executives from the auto, tech, biotech and consumer electronics industries.\n...</p>\n\n<a href=\"https://www.cnbc.com/2021/04/12/biden-meets-today-with-executives-on-chip-shortage-as-us-auto-industry-feels-the-pain.html\">Source Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","isBrief":false,"type":0,"news_type":1,"symbol":".DJI","symbol_name":"道琼斯","start_time":0,"source_url":"https://www.cnbc.com/2021/04/12/biden-meets-today-with-executives-on-chip-shortage-as-us-auto-industry-feels-the-pain.html","article_id":"1159597514","we_media_id":null,"thumbnails":[],"rights":{"source":"cnbc_highlight","url":"https://www.cnbc.com/2021/04/12/biden-meets-today-with-executives-on-chip-shortage-as-us-auto-industry-feels-the-pain.html","rn_cache_url":null,"customStyle":"body{padding-top:10px;}.ArticleHeader-headline{#titleStyle#}a{#lv2TextColor#}.ArticleHeader-time, .Author-authorNameAndSocial a{#sourceStyle#;}","selectors":".PageBuilder-pageWrapper","filters":".ArticleHeader-eyebrow, .RelatedTags-relatedTags","directOrigin":true},"url":"https://stock-news.laohu8.com/highlight/detail?id=1159597514","pubTimestamp":1618238541,"sourceInfo":{"source_id":"cnbc_highlight","name":"CNBC"},"weMediaInfo":null,"summary":"KEY POINTS\n\nThe White House is holding a virtual CEO summit on Monday where President Joe Biden is s","collect":0,"end_time":0,"defaultTopTitle":"cnbc.com","property":[],"viewcount":null,"language":"en","relate_stocks":{".DJI":"道琼斯",".IXIC":"NASDAQ Composite",".SPX":"S&P 500 Index","SPY":"标普500ETF"},"translate_title":"拜登今天就芯片短缺问题会见高管，美国汽车业感受到痛苦","themeId":null,"isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{".DJI":0.9,".IXIC":0.9,".SPX":0.9,"SPY":0.9},"content_text":"KEY POINTS\n\nThe White House is holding a virtual CEO summit on Monday where President Joe Biden is scheduled to meet with executives from the auto, tech, biotech and consumer electronics industries.\nThe discussions are expected to focus on the ongoing semiconductor chip shortage that’s costing automakers billions and forcing massive temporary layoffs.\nBiden’s backed proposals for tax incentives to U.S. manufacturers to make the critical parts in America to avoid shortages in the future.\n\nClarence E. Brown has experienced union strikes, plant shutdowns and layoffs due to parts shortages during his 47 years working forGeneral Motors.\nBut Brown, president of a United Auto Workers local chapter in Kansas, describes the ongoingsemiconductor chip shortagethat’s costing automakers billions and forcing massivetemporary layoffs as more “disappointing” than previous work stoppages because he feels it could have been avoided.\n\"I'm not a corporate multibillionaire, but it doesn't take a rocket scientist to know that there's something wrong with this,\" he told CNBC. \"I've been with General Motors for over 40 some years, and in all 40 some years, they've taught me one thing: Where is 'Plan B'? If 'A' is not working, where is 'Plan B?' Something has to be done so this will never happen again.\"\nThe White House is holding avirtual CEO Summitat noon Monday where President Joe Biden is scheduled to meet with executives from the auto, tech, biotech and consumer electronics industries to discuss the chip shortage, including CEOs Mary Barra of GM, Jim Farley ofFord Motorand Pat Gelsinger ofIntel.\nAuto executives started warning of a chip shortage late last year. Those warnings quickly turned into temporary plant closures for the auto industry, causing automakers to temporarily layoff tens of thousands of U.S. auto workers for varying periods of time since the beginning of the year. Brown's roughly 2,000 hourly workers at GM's Fairfax Assembly plant were among the first to lose work when the factory was idled by GM in early February due to the parts shortage.\n\"I just hope that those people in charge, including the president, can come up with a plan so that this won't happen again,\" said Brown, who metBidenduring a campaign visit to the plant in 2019. \"It's not just a General Motors or Ford or car thing. This has affected other areas of this country as well.\"\nBut experts and company officials say there's little to nothing Biden can do to force chip makers, amajority of which are in Asia,specifically Taiwan, to allocate more to the U.S. automotive industry. Biden could try to pressure them; he's also backed proposals for tax incentives to U.S. manufacturers to make the critical parts in America to avoid shortages in the future.\n\"One of our hopes would be that we could come out of the meeting with a path and a roadmap to getting back to fulfilling 100% of automotive semiconductor orders and have some real insight and transparency into what that timeline might look like,\" Matt Blunt, president of the American Automotive Policy Council, which represents GM, Ford andStellantis NVin Washington, told CNBC.\nBlunt, the former governor of Missouri, said producing more semiconductors domestically is a bipartisan issue due to the \"significant impact the auto industry has on the U.S. economy and the significant negative implications of this semiconductor shortage.\"\nConsulting firm AlixPartners expects the shortage will cost the global auto industryat least $60.6 billionin 2021.\nUnder Biden's$2 trillion infrastructure proposalunveiled earlier this month, $50 billion was for the American semiconductor industry. On Feb. 24, he also ordered a100-day reviewof U.S. supply chains for advanced batteries, pharmaceuticals, critical minerals and semiconductors.\nCurrently, only about 12% of semiconductors, which have extremely long production schedule and shipping times due to the amount of materials and parts used in the chips, are produced in the U.S., according to officials.\n'Critical inflection point'\nSemiconductors arekey components in automotiveused in infotainment, power steering and braking systems, among other things. As multiple plants shuttered last year due to Covid, suppliers directed semiconductors away from automakers to other industries, creating a shortage after consumer demand snapped back stronger than expected. The parts can contain several different sizes and types of chips.\nTom Quillin, Intel senior director for security and trust policy, last week said the tech giant \"sees America at a critical inflection point\" regarding semiconductor production — not just for automotive, but for the technology industry as well.\n\"How the U.S. government invests in the semiconductor industry likely will determine the future of domestic technology innovation and U.S. global leadership,\" he said during the virtual discussion Thursday onthe CHIPS for America Acthosted by  the U.S. Department of Commerce's bureau of industry and security, office of technology evaluation.\nThe three-hour forum included tech executives as well as leaders from smaller companies and policy groups, including Blunt and John Bozzella, CEO of the Alliance for Automotive Innovation that represents the vast majority of automakers with operations in the U.S.\nBozzella urged the Biden administration to adopt policies that encourage U.S. manufacturers to build semiconductors in the U.S., including a investment tax credit that could \"help companies offset the cost of creating new lines within existing facilities or reallocating current production to meet evolving needs.\"\nLow priority\nThere is a myriad of reasons why automakers aren't the top priority for chip manufacturers. First off, the auto industry only accounts for 5% or less of the global usage of chips, according to officials. Many of the chips the industry uses also are older, or \"legacy,\" products that many companies aren't willing to invest in to produce. They instead focus on more advanced semiconductors for tech and consumer products.\nMichael Hogan, a senior vice president of chipmaker GlobalFoundries, which is scheduled to take part in Monday's meeting with the Biden administration, said the chips still compete with consumer products for supply at \"multiple levels in the supply chain\" even though they are older.\n\"These times today are unprecedented, extremely difficult but I think ironically offer the brightest possible prospects for the industry and the country if we act now and move boldly in funding the CHIPS Act,\" he said during the forum last week.\nDepending on the vehicle and its options, experts say a vehicle could have hundreds of semiconductors. Higher-priced vehicles with advanced safety and infotainment systems have far more than a base model, including different types of chips.\nAutomakers have been prioritizing assembly of more profitable vehiclessuch as full-size pickupsby cutting production of cars and crossovers. The Detroit automakers are even partially building pickups to complete and ship at a later date.\nThe shortage has caused significant price and demand increases in 2021, according to Smith, a Houston-based independent distributor of electronic components. Some open market prices have risen 5 to 20 times higher this year, according to the company.\n\"Automotive semiconductor demand has been on a steady rise since the beginning of the year,\" Marc Barnhill, Smith's chief trading officer, said in an emailed statement. \"Smith's market intelligence data now points to even further exacerbation of lead time and demand increases. There has never been an automotive semiconductor shortage quite like this, and it's not close to being over.\"\nAuto impact\nAutomotive executives have characterized the chip shortage as fluid. GM, Ford and others have said the shortage will cut billions off their earnings in 2021.\nAuto research firm LMC Automotive predicts the global automotive industry will produce 811,000 fewer vehicles this year, including 175,000 in North America, as a result. The forecast takes into account much of a nearly 1.4 million decline in global vehicle production during first quarter that is projected to be made up in the second half of the year.\n\"The industry is facing a really different environment than it has in quite a long time,\" said Jeff Schuster, LMC president of the Americas and global vehicle forecasting. \"We've said that a few different times for different reasons, but this one's unique because they can't build what they would like to, and what they could sell. That's going to likely carry into 2022.\"\nGM expects the problem will reduce its operating profit by $1.5 billion to $2 billion this year, while Ford saidthe situationcould lower its earnings by $1 billion to $2.5 billion in 2021.\nThe financial impact of the shortage isn't lost on Brown, president of the UAW Local 31 in Kansas. But his members, like many manufacturing workers, just want to get back to work building the Chevrolet Malibu and Cadillac XT4 for GM.\n\"At this local, we have stuck together during the difficult times and we're sticking together now,\" he said.  \"I just hope and pray that the shortage is over as soon as possible … and I'd like to think after this we have more of those jobs in the United States to make sure if something happens, we'll be able to cover ourselves.\"","kind":null,"is_publish_news":true,"is_publish_highlight":false,"is_publish_live":null,"is_publish_wemedia":null,"editions":null,"column":"","sentiment":"","news_tag":"","news_rank":0,"symbols":[],"gpt_button":1},"commentList":[{"id":345022517,"gmtCreate":1618267663139,"gmtModify":1704708259219,"author":{"id":"3575867013914101","authorId":"3575867013914101","name":"BpchuA","avatar":"https://static.tigerbbs.com/dd3500e66cc249b4480fcc30d7cd6409","vip":1,"crmLevel":4,"crmLevelSwitch":0},"htmlText":"Solid&nbsp;","listText":"Solid&nbsp;","text":"Solid","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":0,"commentSize":0,"repostSize":0,"link":"https://ttm.financial/post/345022517","repostId":1159597514,"repostType":4,"isVote":1,"likeStatus":false,"favoriteStatus":false,"reportStatus":false,"tweetType":1,"langContent":"EN"},{"id":342723051,"gmtCreate":1618243988473,"gmtModify":1704708121770,"author":{"id":"3577096177015881","authorId":"3577096177015881","name":"ET88","avatar":"https://static.tigerbbs.com/972aa6dd92772d6bf44c97a3096c29b6","vip":1,"crmLevel":2,"crmLevelSwitch":0},"htmlText":"Buy&nbsp;Chip chip.","listText":"Buy&nbsp;Chip chip.","text":"Buy Chip chip.","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":0,"commentSize":0,"repostSize":0,"link":"https://ttm.financial/post/342723051","repostId":1159597514,"repostType":4,"isVote":1,"likeStatus":false,"favoriteStatus":false,"reportStatus":false,"tweetType":1,"langContent":"EN"},{"id":342702915,"gmtCreate":1618240097537,"gmtModify":1704708048145,"author":{"id":"3573983104070220","authorId":"3573983104070220","name":"Raychris","avatar":"https://static.tigerbbs.com/d6ba052a63ff93ee2d7ec595895d9b0e","vip":1,"crmLevel":2,"crmLevelSwitch":0},"htmlText":"Yes","listText":"Yes","text":"Yes","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":1,"commentSize":1,"repostSize":0,"link":"https://ttm.financial/post/342702915","repostId":1159597514,"repostType":4,"isVote":1,"likeStatus":false,"favoriteStatus":false,"reportStatus":false,"tweetType":1,"comments":[{"id":4020091,"gmtCreate":1618272914057,"gmtModify":1680783817678,"authorId":3578742007799495,"author":{"id":3578742007799495,"authorId":3578742007799495,"name":"Kristyng","avatar":"https://static.tigerbbs.com/e6d3bead6fea6f6f414ce5a1a3ed5771","vip":1,"crmLevel":1,"crmLevelSwitch":0,"individualDisplayBadges":[]},"repliedAuthorId":0,"objectId":342702915,"type":1,"supId":0,"prevId":0,"content":"?","text":"?","html":"?"}],"langContent":"EN"},{"id":342479428,"gmtCreate":1618239314964,"gmtModify":1704708029917,"author":{"id":"3573619902166819","authorId":"3573619902166819","name":"Yongshunn","avatar":"https://static.tigerbbs.com/9012fdd920e4fb2d023488613b795275","vip":1,"crmLevel":3,"crmLevelSwitch":0},"htmlText":"Get it done Biden&nbsp;","listText":"Get it done Biden&nbsp;","text":"Get it done Biden","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":0,"commentSize":0,"repostSize":0,"link":"https://ttm.financial/post/342479428","repostId":1159597514,"repostType":4,"isVote":1,"likeStatus":false,"favoriteStatus":false,"reportStatus":false,"tweetType":1,"langContent":"EN"},{"id":342479096,"gmtCreate":1618239296715,"gmtModify":1704708027968,"author":{"id":"3569805243820041","authorId":"3569805243820041","name":"mcwood","avatar":"https://static.tigerbbs.com/899c12565f32e74966bd8f5ceac09f7c","vip":1,"hat":"https://static.tigerbbs.com/0a8758340a08196056f8bc1e54805193","crmLevel":6,"crmLevelSwitch":1},"htmlText":"[得意]&nbsp;","listText":"[得意]&nbsp;","text":"[得意]","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":0,"commentSize":0,"repostSize":0,"link":"https://ttm.financial/post/342479096","repostId":1159597514,"repostType":4,"isVote":1,"likeStatus":false,"favoriteStatus":false,"reportStatus":false,"tweetType":1,"langContent":"CN"}],"hasMoreComments":true,"newsSizeData":{"likeSize":18,"commentSize":5,"repostSize":0,"favoriteSize":1,"likeStatus":false,"favoriteStatus":false}}