Output set to fall by a million a quarter
A new report is warning that vehicle manufacturing output in Europe could fall by a million units a quarter.
According to S&P Mobility, parts shortages and continued supply disruption could see output fall by a million vehicles in the fourth quarter of the year and remain at that subdued level all through 2023.
Analyst Edwin Pope said: “The pressure on the automotive supply chain will be intense, especially the more one moves upstream from vehicle manufacturing.”
He said that a shortage of single components could bring plants to a standstill.
Meanwhile, the report also warned that the energy crisis could hinder manufacturing further, especially if energy restrictions are imposed.
It is predicting that about 4.5 million vehicles will be produced each quarter across the continent, although that could drop to 2.8 million if factories face energy restrictions.
That would be 4.8 million to 6.8 million units of lost production on an annual basis.
