German Porsche has warned that it expects weaker business results this year due to an unexpected shortage of aluminum alloys.
A flood at a European aluminum alloy supplier’s plant has threatened Porsche’s supply, affecting the production of all car models, the company says and warns of the possibility of being forced to halt production of one or more series of vehicles.
The supplier reported a “force majeure” in the letter, Porsche said in a statement. This means that it cannot fulfill its contractual obligations due to events beyond its control. Porsche uses aluminum in the body parts of all vehicle series and is exposed to risk by purchasing it from this supplier. The company did not want to specify which alloy supplier it was, it said Index.hr.
Aluminum producer Constellium warned in early July about flooded facilities in Switzerland. And American Novelis reportedly closed its Swiss factory due to flooding.
Both Constellium and Novelis list Porsche as buyers. Neither company wanted to comment on Porsche’s statement or was available for a response, Reuters noted.
The management notes that by the end of the year, it will probably not be able to fully compensate for delays in production and deliveries.
Source: Index.hr / Reuters
Photo: Archive Autoblog.rs / Porsche
Source: autoblog.rs
