The semiconductor shortage continues to impact the automotive industry and according to consulting firm AlixPartners, could cost the industry no less than $210 billion this year.
AlixPartners had previously made a forecast in May that the shortage could cost $110 billion and lead to 3.9 million fewer vehicles being produced. In addition to increasing its estimate for the financial impact of the shortage, the consulting firm now says production of 7.7 million vehicles could be lost.
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“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,” global co-loader of the automotive and industrial practice at AlixPartners, Mark Wakefield, said in a statement issued to Auto News.
Managing director at AlixPartners’ automotive and industrial practice Dan Hearsch added that there are virtually no “shock absorbers” left in the industry, further impacting the shortage. “Virtually any shortage or production interruption in any part of the world affects companies around the globe, and the impacts are now amplified due to all the other shortages,” Hearsch said.
Most major car manufacturers continue to grapple with the shortage and are routinely announcing production halts at plants around the world, or extensions of ongoing production pauses. At the recent Munich Motor Show, Daimler chief executive Ola Kallenius stated that the industry could continue to encounter semiconductor shortages into 2023.
