Worsening chip shortage to cost world's automakers $210 billion

Shortage costs balloon more than 90%; sales to suffer

The cost of the intractable semiconductor shortage has ballooned by more than 90 per cent, pushing the total hit to 2021 revenue for the world’s automakers to $210 billion.

That’s the latest dire forecast from AlixPartners, which predicted global automakers will build 7.7 million fewer vehicles due to the chip crisis this year. That’s almost double the consultant’s previous estimate of 3.9 million. Despite ongoing efforts to shore up the supply chain, semiconductor availability has worsened as automakers exhaust stockpiles and other industries have no more to spare.

“The barrel is empty, there’s nothing left to scrape,” Dan Hearsch, managing director of