Due to the lack of an ongoing semiconductor chip this year, the global automotive industry is now expected to spend approximately $ 210 billion in revenue in 2021, according to consulting firm AlixPartners.
That estimate is almost double the previous estimate of 110 110 billion in May. The New York-based company first released an initial estimate of .6 60.6 billion in late January when car manufacturers began to cut plant production due to parts problems.
“Of course, everyone hoped that the chip crisis would subside by now, but unfortunate incidents such as the Covid-19 lockdown in Malaysia and persistent problems elsewhere have made things worse,” said Mark Wakefield, global co-leader of Automotive and Industrial Practice at AlixPartners, in a statement.
AlixPartners now estimates that 7.7 million units of production will be lost in 2021, up from 3.9 million in May.
Vehicle manufacturers around the world, including Ford Motor and General Motors, had hinted at massive revenue cuts this year due to a shortage of chips. But some, if not all, of those losses have been offset by higher resilience due to resilient consumer demand and record vehicle prices.