According to an estimate by AutoForecast Solutions LLC, automakers have cut more than 9.6 million vehicles from their production schedules due to the chip shortage this year. LMC Automotive said it expects annual production to improve in 2022 before becoming more typical of pre-pandemic years in 2023.
This is the second time Magna has cut its outlook since August, when it reported second-quarter earnings. In a previous May outlook, the company had anticipated sales of between $40.2 billion and $41.8 billion.
Magna said it sees annual light-vehicle production falling 7 percent in North America and 9 percent in Europe from the levels it expected in its August outlook. That month, the company anticipated 14.4 million units of production in North America and 18.1 million in Europe.
Magna’s U.S. peer, Aptiv plc, lowered its annual sales forecast earlier this month, citing the chip shortage.
Magna ranks No. 4 on the Automotive News list of the top 100 global suppliers with worldwide sales to automakers of $32.6 billion during its 2020 fiscal year.
John Irwin of Automotive News contributed to this report.
