Consulting agency AlixPartners stated Thursday the continued semiconductor chip scarcity will price the worldwide automotive business $210 billion this 12 months, a better income loss than beforehand thought.

That determine is up significantly from the agency’s Might forecast, through which it estimated a lack of $110 billion.

AlixPartners additionally says manufacturing of seven.7 million models may very well be misplaced. That is almost double the three.9 million models the agency estimated can be misplaced when it issued its Might forecast.

“In fact, everybody had hoped that the chip disaster would have abated extra by now, however unlucky occasions such because the COVID-19 lockdowns in Malaysia and continued issues elsewhere have exacerbated issues,” Mark Wakefield, world co-leader of the automotive and industrial follow at AlixPartners, stated in an announcement.

One downside is there are nearly no “shock absorbers” left within the business for manufacturing or acquiring materials, stated Dan Hearsch, a managing director in AlixPartners’ automotive and industrial follow.

“Nearly any scarcity or manufacturing interruption in any a part of the world impacts corporations across the globe, and the impacts at the moment are amplified on account of all the opposite shortages,” Hearsch stated in an announcement.