- The automotive industry has been the number one casualty of the global semiconductor crunch: We estimate that it led to a shortfall of about 18mn vehicles around the world.
- Europe’s automotive sector has been hit the hardest, and its weak semiconductor sector did not help. We estimate that the semiconductor crunch will cost Europe about EUR100bn over 2021 and 2022.
- As vehicles will only get more ‘semi-intensive’, the automotive sector will need policy support to avoid more losses in the future. However, support should focus on segments where Europe is both a large manufacturing and final market, i.e. automotive and not consumer electronics.
Read the full report here: https://www.allianz.com/en/economic_research/publications/specials_fmo/Europe-automotives.html