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

Supply chain issues
700,000 fewer cars from Germany

The supply chain issues automakers have been grappling with for months are also reflected in the production numbers. Data collection shows that far 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 automakers will be able to produce around 700,000 fewer cars than expected this year. This is reported by the industrial and economic newspaper “Automobilwoche”, citing documents from the data service provider IHS Markit, which it has exclusively at its disposal. Plans from the beginning of the year were compared to current data in April.

The VW brand is particularly affected, losing more than half a million units this year. The VW group is focusing on its premium brands, which provide more margin. Production at Porsche is even increasing, at Audi it is only falling slightly. This 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 during the year, despite existing bottlenecks in supplier parts, so that we can deliver customer vehicles as quickly as possible,” a spokesperson said. from VW for “Automobilwoche”. However, all forecasts are subject to further restrictions in the supply chain due to the war in Ukraine and the corona lockdown in China.

BMW and Mercedes are also affected

But Mercedes and BMW were also short 80,000 and 100,000 vehicles respectively at the end of the year. Given that Mercedes currently quotes an average price of 70,500 euros for its cars, this means a loss of sales of 5.6 billion euros for this automaker alone, according to the trade newspaper.

Mercedes-Benz only announced at its annual general meeting on Friday that production had so far been little affected by supply chain disruptions caused by the war in Ukraine. In cooperation with suppliers, Mercedes tries to avoid breakdowns, such as wiring harnesses from Ukraine, explained CEO Ola Källenius. “Currently, most of our factories around the world are operating without restrictions.” Raw material supply chains are also currently stable. For example, the automaker has sourced palladium from Russia, but can meet 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 in the coming year.

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