SSNLF - Auto chip shortage driving $61B in lost sales faces complicated recovery

Last week, Ford (F) cut shifts at its truck plants producing the highly profitable F-150, citing the global automotive chip shortage. GM (GM) will completely pause production for all of next week at plants in Kansas, Ontario, and Mexico and said the semiconductor shortage would impact production in 2021. Research firm IHS Markit said the auto chip constraints could impact 672,000 light vehicle production units in Q1, and struggles from the shortage could last into Q3. And the overall hit to the auto industry has been estimated at $61B. So what’s causing the global chip shortage? What other companies or industries are impacted? And when will supplies return to meet demand?Image source: IHS Markit. What caused the auto chip shortage?There is actually a broad-based semiconductor shortage but auto companies are taking the hardest hit due to the pandemic and how foundries assign and adjust production capacity. Vehicle sales plunged after COVID-19 and

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Auto chip shortage driving $61B in lost sales faces complicated recovery