trucks on highway

Biden Administration tasked with recognizing “essential importance of commercial vehicles” amid chip shortage

From Commercial Carrier Journal.

In the midst of an ongoing microchip shortage that continues to constrain vehicle production, one major truck maker says it’s time for the Biden administration to step up and recognize the vital role of commercial vehicles.

Like other OEMs, Volvo Trucks North America has remained in step with White House goals to fight climate change with zero-emission trucks like its VNR Electric, and in a statement to CCJ, they said they support “administration efforts to re-shore semiconductor capability in the U.S.”

However, the nearly 100-year-old truck maker said it’s now time for the Biden administration to focus on a more immediate solution to help bolster commercial vehicle manufacturing, which includes a growing selection of electric trucks that require more semiconductors than internal combustion models.

“Reshoring chip production will help our industry, adding much-needed local capacity for the medium to longer term,” a statement from Volvo Trucks North America reads. “To mitigate the short term, we would like the administration’s support to recognize the essential importance of commercial vehicles.”

Volvo’s comments follow the Biden administration’s recent request to OEMs to divulge their semiconductor counts versus their actual production needs since manufacturers overseas have expressed concerns of chip hoarding among auto makers. Commerce Secretary Gina Raimondo has threatened to use the Defense Production Act to get that chip data.

Determining how semiconductors are divvied up among OEMs that are periodically shutting down assembly lines and losing billions in sales because of chip shortages won’t be easy.

See the complete article online at Commercial Carrier Journal.