Earlier this week, President Biden issued an executive order directing a formal 100-day government review of supply chains for critical goods, including semiconductors and batteries for electric vehicles. A global shortage of semiconductors used in a wide range of manufactured goods, including automobiles, has been hampering vehicle production for months. An increase in global demand during the pandemic for products like electronics, in addition to trade tensions with China, is primarily responsible for the shortage, and there are concerns that a battery shortage could follow.
Cabinet
Katherine Tai, President Biden’s pick to be the U.S. Trade Representative (USTR), was before the Senate Finance Committee yesterday for her confirmation hearing, and addressed questions on how she intends to advance the president’s trade agenda. When questioned on tariffs, she noted that “tariffs are a legitimate tool in the trade toolbox.” As a longtime trade counsel to the House Ways & Means Committee, Tai has broad support and is not expected to face significant opposition to her confirmation, though it’s unclear when she will receive a vote.
Following her own time in front of the Senate panel about a month ago, a vote on the confirmation of the nominee for Secretary of Commerce, Rhode Island Governor Gina Raimondo, is expected early next week. Also this week, former Michigan Governor Jennifer Granholm was confirmed as Secretary of Energy.
ICYMI
AIADA held its 51st Annual Meeting virtually last week. Meet new 2021 Chairman Steve Gates:
Quote of the Week
“If we want to continue to influence trade, tax, and regulatory policy at the federal level – and, believe me, as international nameplate dealers we do – then we’ll have to accept that the old tried and true ways aren’t going to work this year. We must go to the mountain.”
-Steve Gates, AIADA Chairman (www.aiada.org)
Must Read
New AIADA Chairman Steve Gates is out with his first “Out of the Gates” blog, Dealers Will Go to the Mountain.
Must Listen
Check out the latest Beltway Talk podcast, Hyundai’s Rob Hood on Policy, Innovation, and the Opportunities of 2021.
Friday Feel Good
Here are just a few recent examples of how the international nameplate auto industry is doing good in communities across the US during the pandemic:
Texas Subaru dealers, including Brandon Tomes Subaru, Gillman Subaru, Cleo Bay Subaru and Subaru of Georgetown, provided relief to local communities during the Texas energy crisis.
Brickell Honda in Florida held a giveaway in which one of the recipients of a new vehicle was Nicklaus Children’s Hospital.
Subaru of Rochester in Minnesota has worked with Feeding America through a wider Subaru of America initiative to provide 105,035 meals and volunteer time at its local Channel One Regional Food Bank.
We want to hear more about how you are supporting your local community during this difficult time – tweet us at @AIADA_News and use the hashtag #DealersDoGood.
