A shortage of semiconductors is inflicting pain on the automotive industry, forcing companies to cut production and leaving dealers with reduced inventory.
Industry analysts estimate the shortage could cost the entire industry $60 billion. That includes automakers, suppliers and dealers, among others.
In early 2020, automakers were reeling from production slowdowns due to Covid-19 pandemic lockdowns and safety measures.
In the meantime, the semiconductor industry was flooded with demand for chips from the consumer electronics industry. Homebound consumers were buying new entertainment systems, video game consoles and other gadgets to help them pass the time.
Then, car factories hummed back…