Semiconductor Shortage To Cost Industry $210 Billion

Sept. 24, 2021

The ongoing global shortage of semiconductor chips will hit carmakers harder than experts had initially forecasted.

Sept. 24, 2021—The ongoing global shortage of semiconductor chips will hit carmakers harder than experts had initially forecasted, the Detroit Free Press reported. 

A new report released Thursday by consulting firm AlixPartners said the chips crisis will cost the global auto industry $210 billion in revenues this year. That's almost double its  estimate in May of $110 billion. 

“Of course, everyone had hoped that the chip crisis would have abated more by now, but unfortunate events such as the COVID-19 lockdowns in Malaysia and continued problems elsewhere have exacerbated things,” Mark Wakefield, global co-leader of the automotive and industrial practice at AlixPartners, said in a statement. 

In terms of production, AlixPartners forecasts that automakers will lose production of 7.7 million vehicles this year. In May, it had forecast a production loss of 3.9 million.

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Ratchet+Wrench Staff Reporters

The Ratchet+Wrench staff reporters have a combined two-plus decades of journalism and mechanical repair experience.

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