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Worsening Chip Woes to Cost Automakers $210 Billion in Sales

  • Asian factory shutdowns make duration of crisis more uncertain
  • Parts maker Faurecia cuts guidance; Traton to miss sales goals
Infineon Technologies AG Open New Automated Chip Plant
Photographer: Akos Stiller/Bloomberg
Updated on

The cost of the intractable semiconductor shortage has ballooned by more than 90%, pushing the total hit to 2021 revenue for the world’s automakers to $210 billion.

That’s the latest dire forecast from AlixPartners, which predicts global automakers will build 7.7 million fewer vehicles due to the chip crisis this year. That’s almost double the consultant’s previous estimate of 3.9 million. Despite ongoing efforts to shore up the supply chain, semiconductor availability has worsened as automakers exhaust stockpiles and other industries have no more to spare.