Chip shortage to cost automakers US$210bil


Low on chips: Vehicles bound for shipment at the Nagoya Port in Japan. AlixPartners predicts that global automakers will build 7.7 million fewer vehicles due to the chip crisis this year. — Bloomberg

NEW YORK: 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 US$210bil (RM879.11bil).

That’s the latest dire forecast from AlixPartners, which predicted global automakers will build 7.7 million fewer vehicles due to the chip crisis this year.

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