Chip Shortage to Cost Auto Industry $260B in 2021, Firm Predicts
As several auto executives and market analysts expect the ongoing global chip shortage to last through 2022, U.S. consulting firm AlixPartners predicted on Thursday the global auto industry will lose over $260 billion this year.
This is way more than the $140 billion it forecast in May.
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According to AlixPartners, some 7.7 million vehicles won’t be built in all of 2021, nearly double the 3.9 million unit the firm estimated would be lost five months ago.
"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.
He also pointed out that automakers have absolutely no margin left right now for production or sourcing material. Other parts shortages and transportation issues in various parts of the globe are directly affecting companies all around.