Business

Problems with supply chains: 700,000 fewer cars from Germany

Supply chain problems
700,000 fewer cars from Germany

The supply chain problems that car manufacturers have been struggling with for months are also reflected in the production figures. A collection of data shows that significantly fewer vehicles roll off the assembly line in Germany. To offset the financial impact, some automakers are setting clear priorities.

Due to uncertain supply chains, German manufacturers will be able to produce around 700,000 fewer cars than planned this year. This was reported by the industrial and economic newspaper “Automobilwoche”, citing documents of the data service provider IHS Markit, which are at its exclusive disposal. The plans at the beginning of the year were compared with the current data for April.

The VW brand is particularly impressed, losing over half a million units this year. VW Group is focusing on its premium brands, which bring more margin. Production at Porsche is even on the rise, at Audi it is only slightly down. This is to the detriment of the VW brand, which claims to have received more than 500,000 orders. “We are doing everything possible to stabilize production throughout the year, despite the existing bottlenecks in supplier parts, so that we can deliver customers’ vehicles as quickly as possible,” said a VW spokesperson. of “Automobilwoche”. However, all forecasts are subject to further restrictions in the supply chain due to the war in Ukraine and the crown lockout in China.

BMW and Mercedes are also interested

But by the end of the year, Mercedes and BMW were also missing 80,000 and 100,000 vehicles respectively. With Mercedes currently quoting an average price of € 70,500 for its cars, that means a loss in sales of € 5.6 billion for this carmaker alone, according to the trade magazine.

It was only on Friday that Mercedes-Benz announced at its annual general meeting that production had so far been virtually unaffected by the disruptions in supply chains caused by the war in Ukraine. In cooperation with suppliers, Mercedes is trying to avoid breakdowns, such as wiring from Ukraine, explained CEO Ola Källenius. “Currently, most of our plants around the world operate without restrictions.” The supply chains of raw materials are also currently stable. For example, the automaker has obtained palladium from Russia, but can cover almost all of its needs from other sources. Mercedes-Benz is still struggling with the lack of semiconductors. The problem that arose with the corona pandemic will continue into the next year.

About the author

hiyabad

Leave a Comment