Volkswagen, Stellantis Say 1.4 Million Vehicles Lost in Production in Q3 Due to Chip Shortage
The worldwide semiconductor chip scarcity price Volkswagen and Stellantis a mixed 1.4 million autos in misplaced manufacturing within the third quarter, Europe’s two greatest carmakers mentioned on Thursday, although each reported some early indicators of enchancment.
Volkswagen, Europe’s prime automobile firm and likewise the world’s No. 2, reduce its outlook for deliveries, toned down gross sales expectations, and warned of price cuts because it reported lower-than-expected quarterly working revenue.
The German firm mentioned it had made round 800,000 fewer vehicles, or about 35 % lower than in the identical quarter in 2020.
Stellantis, the world’s fourth largest automaker, posted a 14 % fall in pro-forma quarterly income after chip shortages reduce deliberate quarterly manufacturing by 30 %, or 600,000 autos.
Stellantis finance chief Richard Palmer reported a “average” enchancment in chip provide in October, and anticipated that to proceed by the fourth quarter.
However he added provide chain issues meant it was arduous to make predictions in regards to the shortage of automotive semiconductors, which has plagued the trade for a lot of the yr.
“Visibility on semiconductors continues to be a tough topic for the trade,” Palmer mentioned.
Carmakers, which shuttered crops because the COVID-19 pandemic took maintain final yr, have discovered themselves competing towards the sprawling client electronics trade for chip provides.
Provide chain snarls from a fireplace at a chip-making plant in Japan to coronavirus lockdowns in Malaysia, central to international chip provides, have solely compounded the trade’s issues.
The scarcity of chips, utilized in every little thing from brake sensors to energy steering to leisure methods, has led automakers all over the world to chop or droop manufacturing, pushing up each new and used automobile costs amid sturdy demand from shoppers.
Stellantis’ new automobile inventories have been down greater than 42 % year-on-year on the finish of September.
Palmer instructed analysts that, “given the volatility of the market,” Stellantis was not at the moment anticipating giant manufacturing will increase in 2022, however would focus extra on sustaining value ranges whereas battling rising uncooked materials prices.
He mentioned misplaced manufacturing may push Stellantis’ 2021 income “a contact decrease” than its earlier forecast.
Volkswagen finance chief Arno Antlitz mentioned chip shortages “made it abundantly clear to us that we’re not but resilient sufficient to fluctuations in capability utilization.”
“Although the visibility of the state of affairs nonetheless stays tough to forecast, we see the beginning of stabilisation of the chip provide and anticipate” key financials to enhance within the fourth quarter, Antlitz instructed journalists.
Volkswagen’s made a third-quarter working revenue of EUR 2.8 billion (roughly Rs. 24,481 crore), down 12 % on final yr and decrease than the EUR 2.99 billion (roughly Rs. 26,142 crore) Refinitiv forecast. However the firm, aiming to overhaul Tesla because the world’s largest vendor of electrical autos (EVs) by mid-decade, confirmed its working revenue margin goal of 6.0-7.5 % for 2021.
“Clearly, the present volatility brutally showcases Volkswagen’s exceptionally excessive mounted prices particularly within the efficiency of the VW model, which additionally appears to bear the vast majority of the semiconductor associated shortages,” Bernstein analyst Arndt Ellinghorst wrote in a consumer word.
Stellantis, fashioned in the beginning of the yr from the merger of Fiat Chrysler and France’s PSA, confirmed its full-year goal for an adjusted working revenue margin of round 10 %.
Different main carmakers, together with Normal Motors and Renault, have additionally quarterly outcomes damage by the chip crunch.
© Thomson Reuters 2021