The ongoing semiconductor chip shortage is now expected to cost the global automotive industry $110 billion in revenue in 2021, according to consulting firm AlixPartners.
The forecast is up by 81.5% from an initial forecast of $60.6 billion, which the New York-based firm released in late January when the parts problem started causing automakers to cut production at plants.
Mark Wakefield, global co-leader of the automotive and industrial practice at AlixPartners, said a number of factors have contributed to the increase, including a fire at a plant near Tokyo for chip supplier Renesas and weather-related kinks in the automotive supply chain.