Car makers will lose $61 billion billion due to chip shortage
 

Have they looked between the back seat?

Carmakers will lose more than $14 billion in lost revenue in the first quarter and some $61 billion for the year, advisory firm AlixPartners predicts.

A few days before Christmas, when Volkswagen AG said it was bracing for production disruptions because of a semiconductor shortage. Component makers Robert Bosch and Continental AG came next, saying they risked delays, then Nissan Motor Co. confirmed that a dearth of chips would force it to scale back manufacturing of its Note hatchback.

After that, the announcements rolled in fast. Fiat Chrysler idled plants in Canada and Mexico; Daimler said it was affected by the bottleneck; Honda slashed output by about 4,000 cars at a facility in Japan; Ford shut one SUV factory in Kentucky for a week and another in Germany for a month. Researcher IHS Markit says 628,000 cars— three percent of global production—will be knocked off in the first quarter.

Tor Hugh, founder of Elm Analytics, an industry consultant near Detroit said that the problem was that car makers had got in the mode of just managing for next week or next month and don’t tend to stack long term inventory.

https://fudzilla.com/news/automotive...-chip-shortage