Chip shortage weighs on French auto parts supplier Faurecia’s sales

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French automobile elements provider Faurecia’s brand is seen in the course of the firm’s investor day in Paris, France, April 19, 2016. REUTERS/Charles Platiau

PARIS, Oct 26 (Reuters) – French automobile elements maker Faurecia posted a greater than 10% drop in third-quarter gross sales on Tuesday, as its prospects lower manufacturing because of a worldwide scarcity of semiconductor chips.

The group, which provides automobile seats, dashboards and gas techniques to automakers, reported gross sales of three.43 billion euros ($3.99 billion), in comparison with 3.82 billion euros in the identical interval of 2020.

“Market circumstances remained robust up to now quarter, impacted by antagonistic provide chain circumstances, primarily semiconductors,” Chief Government Officer Patrick Koller mentioned in a press release.

Nevertheless, Faurecia mentioned it outperformed worldwide automotive manufacturing, citing October forecasts from info supplier IHS Markit that confirmed a greater than 19% decline in world output.

Automotive makers similar to Renault , Volkswagen and Stellantis – a few of Faurecia’s greatest prospects – have lower manufacturing targets as a result of scarcity, slowing demand for elements.

The provision chain points have pulled the brakes on automobile makers’ efforts to get better from final yr’s coronavirus lockdowns and shift in direction of making electrical automobiles.

Faurecia confirmed its 2021 monetary steering, which it had lower in September because of IHS Markit’s forecast of a worldwide shortfall in automotive manufacturing.

Final week, IHS Markit estimated the provision chain issues would value the automotive trade round 11 million automobiles this yr.

($1 = 0.8593 euros)

Reporting by Sarah Morland; Modifying by Sudip Kar-Gupta and Subhranshu Sahu


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