The chip shortage will cause a loss of 110 billion US dollars in revenue for car companies this year and a reduction in production of 3.9 million cars

Original title: Chip shortage will cause auto companies to lose 110 billion US dollars in revenue this year and reduce production by 3.9 million cars

Gasgoo News According to foreign media reports, consulting firm AlixPartners said,The global shortage of semiconductor chips will result in a loss of US$110 billion in revenue for automakers in 2021, exceeding the previous estimate of US$61 billion; the company expects this to affect the production of 3.9 million vehicles.

Mark Wakefield (Image source: Mark Wakefield LinkedIn)

On May 14, AlixPartners stated,Now, chip tightness makes automakers urgently need to "preemptive" and create "supply chain resilience" in the longer term to avoid future supply interruptions..

In the past, automakers have directly signed supply agreements with some raw material manufacturers, including precious metals such as palladium and platinum that can be used in the production of waste washing systems. However, after the chip market was under-supply and prices soared, car companies adopted a more direct approach to guarantee the supply of precious metals.

Mark Wakefield, co-head of AlixPartners' global automotive market, said,Now, automakers are seeking to establish direct contact with semiconductor manufacturers.The risk of production cuts caused by semiconductor shortages is real, not a potential risk. Wakefield said, "This is shocking." In the past, automakers were reluctant to sign long-term contracts for the purchase of semiconductors or other raw materials and assume financial liabilities for such agreements.

On May 13, Ford stated that it is redesigning auto parts to use more available chips to cope with the global semiconductor shortage.

*Copyright statement: This article is an original article by Gasgoo. If you want to reprint, please abide by the relevant regulations of the reprint instructions. Anyone who violates the reprint instructions will be held accountable by Gasgoo in accordance with the law!