MZDAF - Auto industry to face $110B revenue loss led by global chip shortage: AlixPartners

New York-based consulting firm AlixPartners indicates that semiconductor chip shortage is estimated to cost the global automotive industry $110M in 2021 revenue, an increase of 81.5% from late January forecast of $60.6B.A fire at a plant near Tokyo for chip supplier Renesas and weather-related kinks (severe weather in Texas, drought in Taiwan) in the automotive supply chain have led to the increase in forecast, Mark Wakefield, global co-leader of the automotive and industrial practice at AlixPartners commented.The firm is estimating that production of 3.9M vehicles will be lost in 2021 led by the shortage (compared to 2.2M vehicles January forecast).Led by the shortage, the Biden administration is forced to order a 100-day review of U.S. supply chains; in his $2T infrastructure proposal, ~$50B is earmarked for the American semiconductor industry.Ford (F) indicated that the chip shortage will lower its earnings by about $2.5B in 2021; General Motors (GM) expects a reduction of

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Auto industry to face $110B revenue loss led by global chip shortage: AlixPartners