“Chip shortage expected to cost auto industry $110 billion in revenue in 2021”
May 14, 2021
“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…”
Come on now. We know the vast majority of products are made in China. That’s the source of the shortage. You can bet your bottom dollar on that.