No Preferential Treatment for Auto Sector, Commerce Secretary Assures: WSJ
- Commerce Secretary Gina Raimondo empathized with the array of sectors hit by the pandemic induced semiconductor chip crisis, especially the auto sector, while assuring no preferential treatment towards the industry, during a meeting with Ford Motor Co (NYSE: F), General Motors Co (NYSE: GM), technology companies and chip suppliers, the Wall Street Journal reports.
- Last month a group of technology companies warned the U.S. government against auto sector partiality under the Chips for America Act.
- Raimondo also discussed with Taiwan Semiconductor Manufacturing Co Ltd (NYSE: TSM), which had collaborated with auto customers towards a plausible solution. Intel Corp (NASDAQ: INTC) also offered support for the sector during a chip crisis meeting with President Biden.
- The auto companies had to cut production, which is estimated to lead to a revenue hit by around $110 billion this year.
- Raimondo expected the growth of electric vehicles, 5G, and other technologies to prolong the crisis further. She hailed President Biden’s $2.3 trillion infrastructure proposal, including $50 billion for the American semiconductor industry. Raimondo also sought higher supply chain transparency.
- Price action: F shares traded higher by 1.60% at $12.69, and GM shares traded higher by 0.58% at $55.83 in the premarket session on the last check Friday.
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