Chip Shortage Could Cost Auto Industry $210 Billion in Revenue This Year
September 23 2021 - 6:44AM
Dow Jones News
By Kim Richters
The chip shortage could lead to $210 billion in lost revenue for
the global automotive industry this year, consulting firm
AlixPartners LLP said on Thursday, as companies struggle with
worsening supply-chain disruptions.
AlixPartners expects the auto industry to produce 7.7 million
fewer vehicles in 2021 due to the shortages related to
semiconductors. In May, the firm forecast 3.9 million fewer
produced vehicles.
"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, who co-leads the automotive
and industrial practice at AlixPartners, said.
The semiconductor shortage was "one of a multitude of
extraordinary disruptions the industry is facing, including
everything from resin and steel shortages to labor shortages," he
said.
The firm's estimates come amid warnings from the automotive
industry on the effects of the supply-chain disruptions, with
supplier Faurecia SE on Thursday lowering financial targets for
2021 and truck maker Traton SE earlier this week saying it expected
a hit to vehicle sales in the third quarter.
Write to Kim Richters at kim.richters@wsj.com
(END) Dow Jones Newswires
September 23, 2021 06:29 ET (10:29 GMT)
Copyright (c) 2021 Dow Jones & Company, Inc.
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