Semiconductors crisis costs car companies $100 billion in lost revenue so far this year
28 August 2021: Analysis by GlobalData suggests that the automotive industry so far this year is being hit by lost production and revenue worth up to $100bn caused by the chips shortage.
“Losses will extend at least into Q3, but are expected to ease in Q4 as chip inventory is backfilled,” says Calum MacRae, Automotive Analyst at GlobalData.
The latest analysis by GlobalData puts the year-to-date revenue losses incurred by vehicle manufacturers due to suspended production at between $60.9 billion and $100.5 billion. Worldwide, some 155 plants have suffered shutdowns due to shortages of crucial semiconductor components.
“While Ford has suffered the most in volume losses, General Motors can lay claim to having the two plants most affected by the chip shortages. Its Fairfax and Ingersoll plants have been down for 28 weeks year-to-date,” MacRae says.
“That they have been so affected demonstrates how GM has navigated through the crisis by enriching its model mix and focusing efforts on those vehicles most in demand and the most profitable.
“Next most affected have been Stellantis’s Belvidere plant (down for 25 weeks) and GM’s Lansing Grand River (22 weeks). Ford’s most impacted plant is the F-150 plant at Kansas City.”
