The worst is yet to come for the European car industry. Rising gas and electricity prices will see production fall by more than a million vehicles per quarter until the end of next year.
According to S&P Global Mobility, some equipment manufacturers whose factories are particularly energy-intensive will face “significant cost pressure” in the coming months.
So much so that a harsh winter could make some sites unable to operate their production lines. This is enough to shake up the supply chain a little more, already affected by the pandemic and, in particular, by the shortage of semiconductors.
3 million vehicles per quarter, at best
Result: In the best case, manufacturers should be able to produce 3 million vehicles per quarter, S&P Global Mobility anticipates, compared to 4 to 4.5 million in its previous estimate. The firm is even more concerned because its analysis was done before the NordStream pipeline sabotage late last month. These events, he says, “inevitably” will tip the balance towards the most pessimistic forecasts.
Source: BFM TV
