Problems in car industry – level 3
The global semiconductor chip shortage will cost automakers 110 billion dollars in lost revenues this year, up from a previous estimate of 61 billion.
According to a consulting company AlixPartners, the crisis will hit the production of 3.9 million vehicles.
Volkswagen, Ford, and General Motors are just some of the big names to cut or suspend some output. Honda is the latest company that is paying the price for the shortage of computer chips. On Friday, the Japanese company said that it affected 100,000 vehicles last year, and the problems will likely persist through 2021.
Automakers have been reluctant to make long-term commitments on chip supply for fear of being stuck with financial issues over such agreements. Now, companies will have to respond by building stronger ties to chip makers. Last week, Ford said it was redesigning some parts to use chips that were more readily available.
Difficult words: semiconductor (a material that allows electricity to move through it more easily when its temperature increases), revenue (income or money you make), output (the amount of something produced by a particular company or industry).
You can watch the video news lower on this page.
What do you think about this news?
LEARN 3000 WORDS with NEWS IN LEVELS
News in Levels is designed to teach you 3000 words in English. Please follow the instructions
How to improve your English with News in Levels:
- Do the test at Test Languages.
- Go to your level. Go to Level 1 if you know 1-1000 words. Go to Level 2 if you know 1000-2000 words. Go to Level 3 if you know 2000-3000 words.
- Read two news articles every day.
- Read the news articles from the day before and check if you remember all new words.
- Listen to the news from today and read the text at the same time.
- Listen to the news from today without reading the text.
- Answer the question under today’s news and write the answer in the comments.