Home » The auto sector is still floundering, news on production stoppages weighs heavily

The auto sector is still floundering, news on production stoppages weighs heavily

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Even today, the auto sector remains under pressure on the stock market. This is demonstrated by the trend of the Stoxx 600 Automobiles & Parts index, which drops about one percentage point after the production stoppages announced by some big names in the sector such as the Japanese Toyota. Yesterday, the Japanese auto giant announced that it will suspend production in 14 factories, confirming press rumors that had indicated a 40% reduction in production for the month of September. Volkswagen (Audi) and Stellantis will also have production stops, in particular the latter will have to stop production for at least a week in the Rennes-La Janais plant and for at least three days in Sochaux. In Piazza Affari Stellantis gives about 1% and travels just above the threshold of 17 euros, while on the Dax Volkswagen it loses 1.5%.

“The causes are linked to interruptions in the supply chain in Asia due to the spread of the Covid variant in particular in Malaysia and Vietnam – recall from Equita -. Yesterday IHS had also revised the forecasts on 2021 production which does not incorporate the Toyota cut, foreseeing between 6 and 7 million less volumes due to the shortage impact in 2021 “. The Milanese sim writes that for “OEMs the news is negative but partially offset by the better price-mix as evidenced by the numbers of the first half, while in our opinion it will have a greater impact on Tier 1 which, in our opinion, have less pricing power”.

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