Global automakers could lose $ 210 billion in revenue this year due to supply chain disruptions, consulting firm Alixpartners said today. This forecast is almost double the forecast published at the beginning of the year.
The shortage of semiconductor products is only part of the problem, experts at Alixpartners are sure. High prices and limited supply of materials such as steel and plastics are driving up costs and forcing automakers to cut production. As a result, they may produce 7.7 million less cars in 2021 than they could.
In May, Alixpartners predicted that carmakers would lose $ 110 billion in revenue and output 3.9 million units less than planned.
The new forecast is based on concerns from manufacturers. They note that, contrary to expectations, the semiconductor shortage is unabated, and the prices of materials for car parts are rising as 2021 draws to a close.
I am Derek Black, an author of World Stock Market. I have a degree in creative writing and journalism from the University of Central Florida. I have a passion for writing and informing the public. I strive to be accurate and fair in my reporting, and to provide a voice for those who may not otherwise be heard.
