Chip Scarcity To Value Automakers $110 Billion In Revenues In 2021: Report

The extra direct strategy to securing valuable steel provides was launched after a provide and worth disruption in that market.


Automakers are now looking at developing direct relationships with semiconductor makers

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Automakers at the moment are creating direct relationships with semiconductor makers

The worldwide semiconductor chip scarcity will value automakers $110 billion in misplaced revenues this yr, up from a previous estimate of $61 billion, consulting agency AlixPartners mentioned, because it forecast the disaster will hit the manufacturing of three.9 million autos.

The chip crunch has pushed house the necessity for automakers to be “proactive” proper now, and create “supply-chain resiliency” long run to keep away from disruptions sooner or later, the agency mentioned on Friday.

Automakers have previously had direct provide agreements with producers of sure uncooked supplies, together with valuable metals corresponding to palladium and platinum, utilized in exhaust scrubbing methods.

The extra direct strategy to securing valuable steel provides was launched after a provide and worth disruption in that market.

Additionally Learn: Chip Scarcity To Hit About 100,000 Mazda Autos In 2021​

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Automakers have previously had direct provide agreements with producers of sure uncooked supplies

Automakers at the moment are creating direct relationships with semiconductor makers, mentioned Mark Wakefield, co-leader of AlixPartners’ world automotive follow.

“This stuff are shocked into existence,” he mentioned.

Automakers have been reluctant previously to make long run commitments to purchase semiconductors or different uncooked supplies and tackle the monetary liabilities for such agreements, Wakefield mentioned.

Now, “the chance is actual. It is not a possible” danger of dropping manufacturing to semiconductor shortages, he added.

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Individually, Ford Motor Co mentioned on Thursday it’s redesigning automotive components to make use of extra accessible chips, in response to the worldwide semiconductor scarcity.

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