IHS Markit, whose production projections are cited by automakers, suppliers and research analysts the world over, just took its biggest chop yet to estimates that have been falling all year due to the global chip shortage.
IHS Markit slashed its production forecast for this year by 6.2 percent -- or 5.02 million vehicles -- and lowered its projection for next year by 9.3 percent, or 8.45 million cars and trucks.
The researcher also trimmed its 2023 estimate by 1.1 percent, or 1.05 million units.
"This is the largest single adjustment to the outlook in what has been a turbulent past nine months," the research company said Thursday.
The revisions reflect the challenge the auto industry has had coming to grips with one supply-chain disaster after another.
First, the industry cut chip orders too deeply during last year's initial pandemic lockdowns, ceding its spot in line to sectors that saw demand surge when consumers were forced into quarantine.
Then came winter storms in Texas, a factory fire in Japan and COVID-19 outbreaks in Southeast Asia.