Faurecia sales drop 10% due to chip shortage
PARIS – Faurecia on Tuesday recorded a drop of more than 10% in its sales in the third quarter, its customers having reduced their production due to a global shortage of semiconductor chips.
The French supplier, which supplies car seats, dashboards and fuel systems to automakers, reported sales of 3.43 billion euros ($ 3.99 billion), compared with 3.82 billion euros over the same period of 2020.
“Market conditions have remained difficult during the last quarter, impacted by unfavorable supply chain conditions, primarily for semiconductors,” CEO Patrick Koller said in a statement. declaration.
However, Faurecia said it was surpassing global auto production, citing news provider IHS Markit’s October forecast that indicated a drop of more than 19% in global production.
Automakers such as Renault, Volkswagen and Stellantis – some of Faurecia’s biggest customers – have slashed production targets due to the shortage, slowing demand for parts.
Supply chain issues have slowed efforts by automakers to recover from last year’s coronavirus lockdowns and shift to manufacturing electric vehicles.
Faurecia has confirmed its financial forecast for 2021, which it lowered in September due to IHS Markit’s forecast of a global auto production deficit.
Last week, IHS Markit estimated that supply chain issues will cost the auto industry around 11 million vehicles this year.
Faurecia ranks n Â° 8 on the Automotive news Europe list of the top 100 global suppliers, with global sales to automakers of $ 17.59 billion in 2020.