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Friday, 14 May 2021 22:42

Chip Shortage Impact Surges to $110 Billion, Study Reveals

Written by Paul A. Eisenstein, The Detroit Bureau

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The ongoing semiconductor shortage will cost the global auto industry $110 billion, according to a new study by AlixPartners, nearly twice as much as the consulting firm forecast in January.

And with the crisis expected to trim nearly 4 million vehicles off of industry production plans for 2021 consumers will be scrambling to find new cars and trucks---while also paying more for the vehicles they do purchase.

 

The crisis is even expected to cause chaos as the industry prepares to roll out its 2022 line-up, said Dan Hearsch, a managing director with AlixPartners, warning that, “There are simply going to be instances where they won’t be able to get all the parts” to bring some new models to market on time.

 

To read more, see The Detroit Bureau.

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