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Chip shortage expected to cost $ 210 billion to the automotive industry in 2021

Ford began resuming vehicle production in the United States on May 18, 2020, adopting new coronavirus safety protocols such as health assessments, personal protective equipment, and facility modifications to extend social distance.

Ford

According to consulting firm AlixPartners, the year is endless and the ongoing shortage of semiconductor chips is expected to generate an estimated $ 210 billion in revenue for the global automotive industry in 2021.

The forecast is almost double the previous forecast $ 110 billion in May. Newyork-based company first released its first forecast $ 60.6 billion In late January, parts problems began to force automakers to cut factory production.

“Of course, everyone wanted the chip crisis to be more mitigated, but unfortunate events such as the blockade of COVID-19 in Malaysia and ongoing problems elsewhere made things worse. “Industrial practices at Mark Wakefield and AlixPartners, global co-leaders of the automotive industry, said in a statement.

AlixPartners currently predicts that 7.7 million production units will be lost in 2021 from the May forecast of 3.9 million.

Automakers around the world, including Ford motor When General MotorsWarned of a significant revenue cut this year due to a chip shortage. However, some, if not many, of these losses are offset by resilient consumer demand. Higher profit from record vehicle prices.

Chip shortage expected to cost $ 210 billion to the automotive industry in 2021

Source link Chip shortage expected to cost $ 210 billion to the automotive industry in 2021

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