europe's auto crisis spreads to supply chain
2024-09-18
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reference news reported on september 17according to a report on the bloomberg news website on september 15, the crisis sweeping european automakers is spreading to the pillars of the continent's manufacturing industry.
stagnant sales and several major passenger car factories running below capacity mean supply chain problems are starting to appear, affecting companies ranging from tire makers to metal parts companies.
"overcapacity is looming," bloomberg intelligence analysts gillian davis and michael dean wrote in a report, "as slowing global auto production, rising inventories and automakers scaling back plans for battery electric vehicles have led to a "consensus downward revision" to expectations for auto parts makers this year and next.
that is starting to become a headache for policymakers because the industry’s troubles could have a significant impact on jobs. nearly 14 million people work in the eu, including 3.5 million jobs at manufacturers – both carmakers and suppliers.
unions in germany have mobilized after volkswagen said it was considering closing factories in the country for the first time in its 87-year history, while italy is locked in a protracted dispute with stellantis over the future of the group's factories in the country.
for suppliers, the problem may be even more serious, and investors are starting to take notice.
shares of french auto technology company freia have plunged 22.8% since the beginning of july as profit margins have fallen sharply. german auto industry supplier schaeffler ag has also fallen 21.9%. in contrast, the euro stoxx 600 automotive & parts index has fallen 9.1% over the same period.
bond investors are increasingly concerned about their exposure to highly indebted companies. germany's standa sealing systems hosted a meeting in july to discuss refinancing bonds due in 2026, according to people familiar with the matter. as the negotiations failed, its bond prices fell into distressed territory.
antolin, a spanish company that makes car doors and cockpits, managed to refinance a bond in july, but both its bonds due in 2030 and 2028 fell, data compiled by bloomberg show.
in italy, a metal parts manufacturer is hiring consultants to find a solution to its debt of more than 400 million euros. the company, called cln, needs to refinance bonds due in november and has begun negotiations with bank lenders. stellantis group, a key customer of cln, announced that the electric version of its iconic fiat 500 will be temporarily suspended for one month at a factory in turin. (compiled by zhao feifei)
on september 13, a display car was parked in front of a car dealer in frankfurt, germany. (ap)
