With no sign of ending this 12 months, the continuing semiconductor chip scarcity is now anticipated to value the worldwide automotive business an estimated $210 billion in income in 2021, in line with consulting agency AlixPartners.

The forecast is sort of double it earlier projection of $110 billion in Might. The New York-based agency first launched an preliminary forecast of $60.6 billion in late January when the elements downside began inflicting automakers to chop manufacturing at vegetation.

“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 observe at AlixPartners, stated in a press release.

AlixPartners is now forecasting that 7.7 million items of manufacturing shall be misplaced in 2021, up from 3.9 million in its Might forecast.

Automakers throughout the globe, together with Ford Motor and Normal Motors, had warned of huge earnings cuts this 12 months because of the chip scarcity. However some, if not a lot, of these losses have been offset by resilient client demand and better earnings from report automobile costs.