Chip Shortage Could Cut US Vehicle Production by More than a Million, AAI Warns

The shortfall in semiconductor availability could stall U.S. vehicle production by as many as 1.27 million vehicles in 2021, says the Alliance for Automotive Innovation. In a letter to the Commerce Department, John Bozzella, CEO of the AAI, said that a recent survey of AAI member companies produced the figure. The AAI represents almost 99% of all manufacturers who sell cars and light trucks in the U.S. The prediction falls in line with earlier predictions by other sources. Earlier this year, IHS Markit predicted the shortage would cut annual production by 1 million to 1.3 million vehicles; Alix Partners anticipated the shortage would result in between 1.5 to 5 million fewer vehicles produced.