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Chip scarcity weighs on French auto components provider Faurecia’s gross sales

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

The group, which provides automobile seats, dashboards and gas methods 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 conditions remained tough in the past quarter, impacted by adverse supply chain conditions, primarily semiconductors,” Chief Executive Officer Patrick Koller stated in an announcement.

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

Car makers akin to Renault (RENA.PA), Volkswagen (VOWG_p.DE) and Stellantis (STLA.MI) – a few of Faurecia’s largest prospects – have lower manufacturing targets as a result of scarcity, slowing demand for components.

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

Faurecia confirmed its 2021 monetary steerage, which it had lower in September as a consequence of IHS Markit’s forecast of a world shortfall in automotive manufacturing. learn extra

Last week, IHS Markit estimated the provision chain issues would price the automotive trade round 11 million automobiles this yr. learn extra

($1 = 0.8593 euros)

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

French car parts supplier Faurecia's logo is seen during the company's investor day in Paris, France, April 19, 2016.  REUTERS/Charles Platiau