Chip supply, testing woes to further curb light vehicle production in 2021- IHS Markit

FILE PHOTO: Engine casting blocks, used in a variety of General Motors cars, trucks and crossovers, move down the assembly line at the GM Romulus Powertrain plant in Romulus, Michigan, U.S. August 21, 2019. Rebecca Cook

(Reuters) - Semiconductor shortages and the delayed packaging and testing of the chips will cause production of global light vehicles to drop by five million this year, data firm IHS Markit said on Thursday, marking the biggest cut to its outlook in nine months.

Citing supply chain challenges, IHS said it was cutting its light vehicle production forecast by 6.2% for 2021 and 9.3% for 2022, to stand at 75.8 million units and 82.6 million units, respectively.