Posted on 29 Sep 2021
Global semiconductor shortages will cost the worldwide automotive industry around $210 billion in lost revenue this year, shows the latest forecast of consulting company AlixPartners.
This is markedly more than its estimate in May of $110 billion, Kallanish notes. In terms of vehicles, the company is now forecasting that production of 7.7 million units will be lost in 2021, up from 3.9 million in its May forecast.
“Of course, everyone had hoped that the chip crisis would have abated more by now, but unfortunate events such as the Covid-19 lockdowns in Malaysia and continued problems elsewhere have exacerbated things,” says AlixPartners global co-leader of automotive and industrial practice Mark Wakefield.
“Also, semiconductors are just one of a multitude of extraordinary disruptions the industry is facing, including everything from resin and steel shortages to labour shortages. There’s no room for error for automakers and suppliers right now and they need to calculate every alternative and make sure they’re undertaking only the best options.”
There really are no “shock absorbers” left in the industry right now when it comes to production or obtaining material, notes AlixPartners managing director for automotive Dan Hearsch. “Virtually any shortage or production interruption in any part of the world affects companies around the globe, and the impacts are now amplified due to all the other shortages,” he adds.
It is therefore critical that companies be armed with good information and analysis to begin with, and to follow through with “flawless, determined execution”, Hearsch added.
Tesla head Elon Musk believes the semiconductor crisis will end next year with the emergence of new enterprises producing chips. “I think the situation will be better in 2022. I'm not 100% sure, but I think it will be so," he said during an online speech at Italian Tech Week.
At the beginning of September, semiconductor shortages forced Ford, General Motors, Audi, Nissan and Volvo to halt some production sites. Russian carmakers have also been hit by the lack of supply.
Boston Consulting Group (BCG) previously said almost 9 million fewer vehicles will be produced in 2021 due to the global chip problem.
Source:Kallanish
