Chip Shortage Projects Over $60B in Lost Auto Sales in 2021.
Earlier this month, we reported on the microchip shortage and how it has and will continue to negatively effect auto sales both in 2020 and projections into 2021.
Major auto manufacturers have felt the pinch of the global semiconductor shortage in the second half of 2020 and into 2021. Production as a whole has seen a downturn, and high-end models that produce a higher profit margin for the likes of Toyota, Nissan, Ford, and others have forced these companies to prioritize certain models for production.
While this is definitely a cause for concern when it comes to the 2021 chip production outlook, some within the industry have optimism that this downturn will be relatively short-lived. While shortages are still expected for most of 2021, and even possibly into 2022, recovery is already on its way due to changes that have been implemented in the global microchip production chain to diversify the way manufacturing is completed and supply chains are kept at a steady pace.