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Automotive Chip-Shortage Cost Estimate Surges to $110 Billion

  • Global automakers seen losing output of 3.9 million vehicles
  • AlixPartners raises cost projection from previous $61 billion
The Ford Motor Co. Mustang Mach-E electric vehicle at the Auto Shanghai 2021 show in Shanghai on April 20.

The Ford Motor Co. Mustang Mach-E electric vehicle at the Auto Shanghai 2021 show in Shanghai on April 20.

Photographer: Qilai Shen/Bloomberg
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As the semiconductor shortage hobbling the global automotive industry has worsened, its cost as a hit to sales has almost doubled to $110 billion, up from an earlier estimate of $61 billion.

That’s the latest assessment of AlixPartners, a global consulting firm closely monitoring the widening crisis. It also now says the world’s carmakers will lose 3.9 million vehicles of production to the chip shortage this year, more than its prediction four months ago of 2.2 million. That’s about 4.6% of the 84.6 million vehicles that AlixPartners had projected in total production for 2021.