AlixPartners sees loss of 3.9 million vehicles in 2021 due to chip shortage.

In its report on Friday, AlixPartners (consulting firm) said the global automotive industry is expected to take a $110 billion (£78 billion) hit to revenue this year due to the ongoing semiconductor chip shortage. The forecast in January had expected global production to be slashed by 2.2 million vehicles due to the chip shortage. The updated estimate, however, sees a loss of 3.9 million vehicles in 2021. In recent announcements, Ford Motor and General Motors have estimated a $2.5 billion and a $1.5 billion hit, respectively, to full-year earnings due to the chip shortage. The chip shortage originated because of the Coronavirus pandemic that pushed car makers into temporarily shutting down their production facilities.