Volkswagen, Stellantis Say 1.4 Million Vehicles Lost in Production in Q3 Due to Chip Shortage


The international semiconductor chip scarcity value Volkswagen and Stellantis a mixed 1.4 million autos in misplaced manufacturing in the third quarter, Europe’s two largest carmakers stated on Thursday, although each reported some early indicators of enchancment.

Volkswagen, Europe’s prime automobile firm and likewise the world’s No. 2, lower its outlook for deliveries, toned down gross sales expectations, and warned of value cuts because it reported lower-than-expected quarterly working revenue.

The German firm stated it had made round 800,000 fewer automobiles, 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 lower deliberate quarterly manufacturing by 30 %, or 600,000 autos.

Stellantis finance chief Richard Palmer reported a “moderate” enchancment in chip provide in October, and anticipated that to proceed by way of the fourth quarter.

But he added provide chain issues meant it was onerous 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 difficult subject for the industry,” Palmer stated.

Carmakers, which shuttered vegetation because the COVID-19 pandemic took maintain final yr, have discovered themselves competing in opposition to the sprawling client electronics trade for chip provides.

Supply 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, used in every part from brake sensors to energy steering to leisure methods, has led automakers around the globe to lower or droop manufacturing, pushing up each new and used automobile costs amid sturdy demand from shoppers.

Stellantis’ new automobile inventories had 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 massive manufacturing will increase in 2022, however would focus extra on sustaining worth ranges whereas battling rising uncooked materials prices.

He stated misplaced manufacturing might push Stellantis’ 2021 income “a touch lower” than its earlier forecast.

Volkswagen finance chief Arno Antlitz stated chip shortages “made it abundantly clear to us that we are not yet resilient enough to fluctuations in capacity utilization.”

“Even though the visibility of the situation still remains difficult to forecast, we see the start of stabilisation of the chip supply and expect” key financials to enhance in 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. But the corporate, aiming to overtake 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.

“Obviously, the current volatility brutally showcases Volkswagen’s exceptionally high fixed costs especially in the performance of the VW brand, which also seems to bear the majority of the semiconductor related shortages,” Bernstein analyst Arndt Ellinghorst wrote in a consumer observe.

Stellantis, shaped initially 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 %.

Other main carmakers, together with General Motors and Renault, have additionally quarterly outcomes damage by the chip crunch.

© Thomson Reuters 2021