PARIS, Oct 26 (Reuters) – French car parts maker Faurecia (EPED.PA) posted a more than 10% drop in third-quarter sales on Tuesday, as its customers cut production due to a global shortage of semiconductor chips.
The group, which supplies car seats, dashboards and fuel systems to automakers, reported sales of 3.43 billion euros ($3.99 billion), compared to 3.82 billion euros in the same period of 2020.
“Market conditions remained tough in the past quarter, impacted by adverse supply chain conditions, primarily semiconductors,” Chief Executive Officer Patrick Koller said in a statement.
However, Faurecia said it outperformed worldwide automotive production, citing October forecasts from information provider IHS Markit that showed a more than 19% decline in global output.
Car makers such as Renault (RENA.PA), Volkswagen (VOWG_p.DE) and Stellantis (STLA.MI) – some of Faurecia’s biggest customers – have cut production targets due to the shortage, slowing demand for parts.
The supply chain issues have pulled the brakes on car makers’ efforts to recover from last year’s coronavirus lockdowns and shift towards making electric vehicles.
Faurecia confirmed its 2021 financial guidance, which it had cut in September due to IHS Markit’s forecast of a global shortfall in automotive production. read more
Last week, IHS Markit estimated the supply chain problems would cost the automotive industry around 11 million vehicles this year. read more
($1 = 0.8593 euros)
Reporting by Sarah Morland; Editing by Sudip Kar-Gupta and Subhranshu Sahu
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