The Astonishing Possible Cost of the Chip Crisis Revealed

The effects of the chip crisis that hit the automotive industry began to become clear gradually. The cost of the crisis to the companies in the sector is expected to reach 210 billion dollars by the end of the year.

One of the biggest problems of the automotive industry in recent years chip crisis. After the onset of the coronavirus pandemic, chip manufacturers prioritized areas with increased demand. From smartphones, tablets and other electronic devices, there are literally no chips left in vehicles.

AlixPartners consulting firm has announced its forecasts of what the cost of chip shortages will be to the automotive industry globally. It should be noted that the company also provides consultancy services to many of the world’s leading automotive companies.

Big increase in cost

Chip shortage in automotive companies, according to AlixPartners 90% increase in costs caused. By the end of the year, the total revenue of this industry will be $210 billion lower than it should have been due to the chip crisis.

The firm has previously published two reports on the chip crisis. In the first of these reports, it was predicted that the cost of the crisis to the sector would be 61 billion dollars. In the second report in May, this estimate was updated to 110 billion dollars. According to the latest estimates this year 7.7 million fewer vehicles will be produced, and the total cost of this situation will be 210 billion dollars.

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Delivery time of chips ordered by automotive companies due to chip shortage 21 weeks had found it. With the effect of this situation, production in the automotive sector also slowed down and companies had to use their stocks. In general, it is difficult to say that there has been an improvement in the situation.

Sales will suffer

chip

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CEO of AlixPartners Dan Hearschtold Bloomberg “Sales will suffer in the future. Since there was enough inventory on hand, sales were not damaged. We are no longer in that situation. used the phrases. According to the CEO, the supply is so low that some galleries have to rent cars to exhibit.

Of course, this crisis also affects the consumer. negatively reflects. While it is getting harder to find a vehicle, vehicle prices are increasing rapidly both in the world and in our country. This makes it almost impossible to buy a car, which is already difficult.

Source :
https://www.sozcu.com.tr/2021/otomotiv/cip-crisis-maliyetinin-yil-sonuna-kadar-210-milyar-dolar-olmasi-beklenen-6665133/


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