Business

Chip shortage: Global auto industry may suffer $210bn loss in 2021

The global semiconductor chip shortage is expected to cost the global automotive industry $210 billion in revenue in 2021, consulting firm AlixPartners said on Thursday.

Published

4 weeks ago

Sep 23, 2021 08:26 PM

Faisal Ali Ghumman

Chip shortage: Global auto industry may suffer $210bn loss in 2021

GNN Media: Representational Photo

The forecast is almost double it previous projection of $110 billion in May. The New York-based firm released an initial forecast of $60.6 billion in late January when the parts problem started causing automakers to cut production at plants.

“Of course, everyone had hoped that the chip crisis would have abated more by now, but unfortunate events such as the COVID-19 lockdowns in Malaysia and continued problems elsewhere have exacerbated things,” said Mark Wakefield, global co-leader of the automotive and industrial practice at AlixPartners, in a statement.

AlixPartners is now forecasting that 7.7 million units of production will be lost in 2021, up from 3.9 million in its May forecast.

The biggest hit to production occurred in the second quarter, according to Dan Hearsch, a managing director in the automotive and industrial practice at AlixPartners.

“The second quarter of this year is still the worst of chip shortage so far in terms of lost vehicles,” he said in an email to CNBC. “But what’s changed is that the auto industry globally simply hasn’t recovered as quickly as we thought when we did our forecast back in May due to unforeseen things since then like the rise of the delta variant and the Covid breakouts in Malaysia and other Southeast Asian countries.”

Automakers across the globe, including Ford Motor and General Motors, had warned of massive earnings cuts this year due to the chip shortage. But some, if not much, of those losses have been offset by resilient consumer demand and higher profits from record vehicle prices.

AlixPartners expects the parts problem to continue into at least the second quarter of next year, according to Hearsch. He said it will “probably be a bit longer” until vehicle inventory levels noticeably improve, citing other supply issues with labor, transportation and other materials.

SOURCE: CNBC

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Faisal Ali Ghumman

Faisal Ali Ghumman is a senior editor at GNN, known for writing top quality content which garner very high readerships and has been covering every field of journalism, including politics, media, sports and scholarly articles. Faisal Ali Ghumman is nothing less than a Veteran Editor and has been writing for GNN for the past 4 months.

Pakistan

Pakistan logs over 600 new COVID infections, 20 deaths

According to National Command and Operations Center (NCOC), around 603 cases of coronavirus were reported while 20 people succumbed to the disease in the last 24 hours, taking the total death toll to 28,300.

Published

2 days ago

Oct 19, 2021 08:51 AM

Mehak Javed

Pakistan logs over 600 new COVID infections, 20 deaths

Islamabad: Amid a steady decline in Covid-19 infections, Pakistan's coronavirus positivity ratio further fell to 1.37% with 603 new cases.

Pakistan is presently experiencing the fourth wave of coronavirus which is said to be deadlier and more contagious than the previous three COVID waves.

The total number of cases has reached 1,265,650.

As many as 1,211,710 patients have recovered from the disease with 1,852 critical cases.

Punjab

The number of patients swelled to 438,133 in the province with 12,861 causalities.

Sindh

The number of infections has surged to 466,154 in the province, while the death toll has reached 7,533.

Khyber Pakhtunkhwa

The confirmed cases have surged to 176,950 in the province with 5,689 casualties.

Balochistan

There are 33,133 confirmed cases while 354 patients have died from the infection so far.

AJK and Gilgit-Baltistan

There are 34,406 coronavirus cases in the AJK while the death toll has reached 740. On the other hand, there are 10,370 cases in GB with 186 coronavirus deaths.

Islamabad

There are 106,504 cases in the capital city while 937 people have lost their lives.

Pakistan

COVID-19: Pakistan sees significant decline in daily fatalities

Pakistan on Monday saw a sharp decline in fatalities from the coronavirus, registering 27 fatalities over the past 24 hours, down from 34 a day earlier, according to the country’s Health Ministry.

Published

2 weeks ago

Oct 04, 2021 08:46 AM

Mehak Javed

Islamabad: Pakistan on Monday saw a sharp decline in fatalities from the coronavirus, registering 27 fatalities over the past 24 hours, down from 34 a day earlier, according to the country’s Health Ministry.

Pakistan is presently experiencing the fourth wave of coronavirus which is said to be deadlier and more contagious than the previous three COVID waves. Today, the daily positivity rate in-country is at 2.84%.

According to National Command and Operations Center (NCOC), around 1,490 cases of coronavirus were reported while 27 people succumbed to the disease in the last 24 hours, taking the total death toll to 27,893.

The total number of cases has reached 1,251,348.

As many as 1,177,249 patients have recovered from the disease with 3,407 critical cases.

Punjab

The number of patients swelled to 433,286 in the province with 12,685 causalities.

Sindh

The number of infections has surged to 460,111 in the province, while the death toll has reached 7,427.

Khyber Pakhtunkhwa

The confirmed cases have surged to 174,671 in the province with 5,580 casualties.

Balochistan

There are 32,981 confirmed cases while 349 patients have died from the infection so far.

AJK and Gilgit-Baltistan

There are 34,234 coronavirus cases in the AJK while the death toll has reached 738. On the other hand, there are 10,332 cases in GB with 186 coronavirus deaths.

Islamabad

There are 105,733 cases in the capital city while 928 people have lost their lives.

Pakistan

As fourth wave continues, Pakistan reports over 1000 cases, 27 deaths

According to National Command and Operations Center (NCOC), around 1,086 cases of coronavirus were reported while 27 people succumbed to the disease in the last 24 hours, taking the total death toll to 28,228.

Published

6 days ago

Oct 15, 2021 09:09 AM

Mehak Javed

As fourth wave continues, Pakistan reports over 1000 cases, 27 deaths

Islamabad: Pakistan is presently experiencing the fourth wave of coronavirus which is said to be deadlier and more contagious than the previous three COVID waves.

The total number of cases has reached 1,262,771.

As many as 1,194,590 patients have recovered from the disease with 2,132 critical cases.

Punjab

The number of patients swelled to 437,316 in the province with 12,821 causalities.

Sindh

The number of infections has surged to 464,746 in the province, while the death toll has reached 7,520.

Khyber Pakhtunkhwa

The confirmed cases have surged to 176,501 in the province with 5,673 casualties.

Balochistan

There are 33,108 confirmed cases while 352 patients have died from the infection so far.

AJK and Gilgit-Baltistan

There are 34,380 coronavirus cases in the AJK while the death toll has reached 740. On the other hand, there are 10,363 cases in GB with 186 coronavirus deaths.

Islamabad

There are 106,357 cases in the capital city while 936 people have lost their lives.