Porsche may suspend part of its production due to an aluminum shortage caused by flooding in Europe.
Porsche is facing an aluminum shortage caused by flooding in Europe, disrupting its key suppliers. This is seriously affecting Porsche’s ability to deliver its cars on time. The brand is also facing a drop in demand in China, forcing it to revise downward its financial forecast for the year. Porsche must find solutions to diversify its sources of supply and adapt to unforeseen events.
No aluminum, no Porsche
Porsche could stop part of its production. The reasons are: a shortage of aluminum supply disrupted by flooding in Switzerland. Suppliers of the brand suffered damage, forcing them to slow down or stop production. This is the case of Novelista supplier of the German manufacturer which had to stop production because its factory was flooded. The situation is such that Porsche cannot guarantee delivery of its vehicles on time.. According to analysts, this interruption could lead to a loss of production of 17,400 vehicles for Porsche in the second half of the year. However, the shortage also affects other car manufacturers such as BMW, Mercedes, and Audi. Interestingly, the latter have managed to find other suppliers. Unlike Porsche, which seems more vulnerable to this crisis. Indeed, the German manufacturer does not seem to have managed its business well by diversifying its suppliers very little. Thus, in the event of a natural disaster, for example, the manufacturer, which has become heavily dependent on a few suppliers, cannot overcome the crisis.
A crisis that comes at a bad time
The crisis comes at an already difficult time for Porsche. The automaker is facing declining demand for its electric vehicles, particularly in China, where Porsche sales fell by 33% in the first half of the year. These events have forced Porsche to adjust its financial forecasts for the year. The company is now counting on a turnover of between 39 and 40 billion euros, compared to 40 to 42 billion previously. And now? Faced with this situation, Porsche will have to move forward with great caution. The brand is at a crossroadsbetween customer expectations, logistical issues and financial pressures. To overcome all this, The German manufacturer will have to find solutions, such as reducing its dependence on a single supplier or a single region.. In addition, if Porsche wants to maintain its position, it will have to adapt to unforeseen situations such as flooding, and that is not yet a given! The situation seems a little complicated for the manufacturer, which will have to find solutions as quickly as its models, at the risk of remaining under the storm for a certain amount of time.
Source: www.autoplus.fr
