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 email@example.com
(END) Dow Jones Newswires