Yahoo Autos Chip Shortage Absolutely Tanking New Car Sales
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Automakers are cutting well into muscle at this point…
More bad news about the global semiconductor chip shortage and the auto industry: a new forecast from AlixPartners pegs automakers’ losses to be far greater than initially expected. The consulting firm believes the shortages will lead to 7.7 million fewer cars built in 2021, leading to a loss of $210 billion in automakers’ profits worldwide. Previous projections were of $110 billion shortfall, meaning the fallout of the shortage could be catastrophic.
Find out more about the plan to stop the chip shortage here.
As a result, automakers have been forced to cut production of some cash cow model lines, like Fordtemporarily closing its Kansas City assembly plant where the F-150 pickup is made. Stellantis has been forced to halt production of the Ram 1500 in Michigan, while Toyota’sIndiana plant has been temporarily shut down, meaning fewer Sequoias, Highlanders, and Siennas.
