Chip shortage expected to cost auto industry $110 billion in 2021

The ongoing semiconductor chip shortage is now expected to cost the global automotive industry $110 billion in revenue in 2021, according to consulting firm AlixPartners.

The forecast is up by 81.5% from an initial forecast of $60.6 billion, which the New York-based firm released in late January when the parts problem started causing automakers to cut production at plants.

Mark Wakefield, global co-leader of the automotive and industrial practice at AlixPartners, said a number of factors have contributed to the increase, including a fire at a plant near Tokyo for chip supplier Renesas and weather-related kinks in the automotive supply

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Chip shortage explained: Low inventory, skyrocketing used car prices and no end in sight

As you well know, microchips are found in virtually everything, from the obvious (cellphones, smart devices) to the not-so-obvious (your power tool’s lithium-ion battery, for example). In your car, there are computer modules controlling virtually everything, from engine and transmission operation to in-car tech and virtually everything in between. Long gone are the days of cars having “a” computer. Today, they’re everywhere, and interconnected in ways that make them all vital to a car’s fundamental operation.

The microchip is as ubiquitous in modern consumer products as wood is in home construction. But unlike lumber, microchips aren’t merely refined raw material.

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Toyota shrugs off pandemic and chip shortage as quarterly profit nearly doubles

TOKYO — Toyota shrugged off the pandemic slump and global microchip crunch to nearly double its operating profit in the latest quarter and book a 9 percent profit margin on rebounding sales.

Toyota’s operating profit surged to 689.8 billion yen ($6.26 billion) in the fiscal fourth quarter ended March 31, from 359.9 billion yen the previous year, CFO Kenta Kon said Wednesday while announcing the company’s fiscal full-year earnings.

The results delivered a robust 9 percent operating profit margin for the most recent quarter, up from 5.2 percent a year earlier, as Toyota fortified its bottom line despite the global

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Automakers get creative to navigate chip shortage

Stellantis is working on more standardization across its vehicle lineup rather than having to use specific chips for some models, CFO Richard Palmer said on a call with reporters last week.

“More standardization and flexibility — which is key when we have supply constraints,” he said. “We are managing scarcity.”

Automakers are also stocking incomplete cars, or “building shy” in industry parlance, to keep production lines humming.

In Hamtramck, Mich., near Detroit, an area stretching several blocks is filled with Ford F-150 pickups without some chips. General Motors said it is also storing unfinished vehicles while awaiting semiconductors.


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Chip shortage forces automakers to leave out some high-end features

Nissan, which in early January became one of the first automakers to warn of an impending shortage, is also prioritizing chip supply to the two best-selling models in each major market, the person said.

In one instance, Nissan flew chip supplies from India to the U.S. on a chartered cargo flight to help production move forward there. A representative for Nissan declined to comment.

Buyers of Renault’s Arkana now have to settle for a smaller display without a navigation map and forgo an option for a phone charger by induction.

Stellantis has modified the Ram 1500 pickup so that the

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Bicycle shortage continues frustrating those in the industry

BATON ROUGE – It’s been an uphill ride for bike shop owners since the start of the pandemic. There is a national shortage of supplies, slowing down business.

“It’s frustrating to not be able to get simple tubes. Tires and parts I would never think we would have a shortage of are now insane to find,” said Zachary Bird, general manager at Front Yard Bikes at Mid City.

Bird said the problem started when gyms shut down, and people were looking for different ways to work out.

“That caused a huge number of people to be interested in bikes, bike

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