Chip shortage will cost automakers $ 110 billion this year

Chip shortage will cost automakers $ 110 billion this year

A global shortage of semiconductor chips this year will result in lost revenue of $ 110 billion for automakers. This estimate was published by the consulting company AlixPartners, noting that the new estimate is significantly higher than the previous estimate ($ 61 billion). According to AlixPartners, the crisis will affect the production of 3.9 million vehicles.

The scarcity has prompted carmakers to intensify their procurement activities and the desire to ensure the sustainability of the supply chain over the long term. At one time, the imbalance between supply and demand for certain types of raw materials led to higher prices and forced automakers to enter into direct supply agreements. Automakers are now considering establishing direct links with semiconductor manufacturers. This is atypical in the industry, as in the past, automakers have been reluctant to make long-term commitments to the procurement of components and raw materials. However, the real risk of financial loss is a game changer.

Chip shortage will cost automakers $ 110 billion this year

Leave a Comment