Temporary car factories shut down – current situation of suppliers?

23 October 2021 Posted in Members, News, News

Due to problems with deliveries on world markets, FIAT factories in Poland were temporary shut down.

MOTOFAKTOR portal checked how this situation affects the automotive suppliers.

Polish Automotive Group was asked to comment on this matter.

The biggest problem have those who are suppliers for the first assembly, for the production of new vehicles and have no other customers. On the other hand pretty good situation have those who have diversified production, for example to various vehicle manufacturers: to popular vehicles and premium vehicles, passenger cars and trucks and it is best if they also have customers from other industries, for instance agriculture, furniture, construction, household appliances or pharmaceuticals. Many companies already have more or less diversified production, but also companies consistently develop in this direction. However after all currently almost everyone experiences some delays – notices Bartosz Mielecki – Managing Director of the Polish Automotive Group.

The current year was very difficult for many companies, and although it will end with revenues at an acceptable level, their profitability this year will often be much lower than in previous years. At the moment, there is a strong price battle between suppliers. On the other hand, hope is raised by new inquiries coming from markets where companies have not been present so far (e.g. from Greece). The future is the most worrying – entrepreneurs have a lot of question marks – how long will take the global chip shortage, very high prices of raw materials and frights – it all affects on car producers, and also questions and fears arising from changes in the law and taxes that will be brought by the program Polish Deal.

Entrepreneurs are afraid that the crisis will start spreading to other industries, which at the moment allow them to survive, adds Bartosz Mielecki.

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