Porsche’s supply chain has been hit by a shortage of aluminium alloys as the result of flooding at an unnamed European supplier. Heavy rains in France, Switzerland and Italy at the very end of June caused flooding and fatal landslides as well as disrupting manufacturing. Porsche said the supplier had notified customers of the occurrence of a force majeure event.
The carmaker said the significant shortage of supply caused by the flooding had hit various of its tier one parts suppliers and it had been working with them to find alternative sources. “However, as the European capacities for aluminium are exhausted and alternative suppliers can only offer very limited material, this is a major challenge,” said a spokesperson for Porsche, adding that its tier suppliers were looking beyond Europe and that technical approvals for alternative suppliers would take time.
The parts affected are lightweight body components made of aluminium which are used across Porsche’s model range. Porsche said the shaping of the distinctive outer skin, which is typical of Porsche design, requires aluminium with very special alloys and that meant depending on highly competent partners.
“Despite immediate countermeasures, it is becoming apparent that the impending supply shortage will lead to impairments in production that will not be fully compensated for over the course of the year,” said the company in a statement.
Furthermore, the carmaker said that long process lead times had to be taken into account for aluminum. “This means that if alternative material is ordered now, it can only be delivered after eight to twelve weeks,” said the spokesperson. “We are striving to secure the implementation of alternative delivery scenarios for all vehicles.”
In response Porsche has lowered its return-on-sales forecast to between 14% and 15% and revised its sales revenue to between €39 billion and €40 billion (from €40 billion-€42 billion). It also said that its share of battery EV would now be between 12% and 13% when it was previously set at between 13% and 15%. Porsche shares dropped 4% last week.
Porsche posted a positive second quarter up on Q1 in terms of sales revenue, operating profit and group operating return on sales, which was 17% in Q2. In the first half of 2024 it made €3.1 billion in group operating profit, with a 15.7% group operating return on sales.
The carmaker reported high demand for its 911 Carrera GTS T-Hybrid and said that along with the new all-electric Macan it has enhanced its product portfolio for the long term.
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