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Message : Required fields (Reuters) - The global semiconductor chip shortage will cost automakers $110 billion in lost revenues this year, up from a prior estimate of $61 billion, consulting firm AlixPartners said, as it forecast the crisis will hit the production of 3.9 million vehicles. The chip crunch has driven home the need for automakers to be "proactive" right now, and create "supply-chain resiliency" longer term to avoid disruptions in the future, the firm said on Friday. Automakers have in the past had direct supply agreements with producers of certain raw materials, including pr...

The chip crunch has driven home the need for automakers to be "proactive" right now, and create "supply-chain resiliency" longer term to avoid disruptions in the future, the firm said on Friday. Automakers have in the past had direct supply agreements with producers of certain raw materials, including precious metals such as palladium and platinum, used in exhaust scrubbing systems. Automakers are now looking at developing direct relationships with semiconductor makers, said Mark Wakefield, co-leader of AlixPartners' global automotive practice.

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. "The pandemic-induced chip crisis has been exacerbated by events that are normally just bumps in the road for the auto i...

(Reuters) - The global semiconductor chip shortage will cost automakers $110 billion in lost revenues this year, up from a prior estimate of $61 billion, consulting firm AlixPartners said, as it forecast the crisis will hit the production of 3.9 million vehicles. The chip crunch has driven home the need for automakers to be "proactive" right now, and create "supply-chain resiliency" longer term to avoid disruptions in the future, the firm said on Friday. Automakers have in the past had direct supply agreements with producers of certain raw materials, including precious metals such as palla...

Chip shortage could cost auto industry $110B, AlixPartners says Alexa St. John File photo The worsening chip shortage could cost the auto industry $110 billion in lost revenue this year, consultancy AlixPartners said early May 14 in an updated forecast. AlixPartners' latest prediction is nearly double its estimate in January that the total impact of the semiconductor shortage would be $61 billion. The company said it also anticipates that net production of 3.9 million vehicles will be lost this year, bringing expected global light-vehicle production down to 80.7 million units. Automakers have...