Orders following the crisis of the automotive subcontracting – Companies

Waiting a year to receive a car is no longer exceptional. Due to the missing semiconductors, the Ukrainian conflict, the return of covid to China. In addition, there is a shortage of customers in the retail market.

They are quite rare, the cars were delivered three months after the order as was usual two or three years ago with the models to be assembled according to the customer’s choice. Now the lucky ones wait six months, the others a year. Sometimes more. “A year and a half ago I ordered a hybrid VW Passat, now it’s here,” a company executive told us in an interview in early May. This delay is caused by the shortage of semiconductors, which are numerous in a hybrid vehicle.

They are quite rare, the cars were delivered three months after the order as was usual two or three years ago with the models to be assembled according to the customer’s choice. Now the lucky ones wait six months, the others a year. Sometimes more. “A year and a half ago I ordered a hybrid VW Passat, now it’s here,” a company executive told us in an interview in early May. This delay is caused by the shortage of semiconductors, which are numerous in a hybrid vehicle. When will this shortcoming end? “By the end of the year or in 2023,” says Gabriel Goffoy, communications director at Febiac, the federation of car importers. Some manufacturers confirm this prediction, such as the VW group. “The semiconductor deficit will not be a problem for long,” Herbert Diess recently told the Spanish newspaper Cinco Dias. It will be reduced in the second half of the year. For now, the delays are significant. To order a Ghent-mounted Volvo C40 or XC40 takes between seven and nine months in all-electric mode, 13 months for the plug-in hybrid V90. Delivering a VW Golf takes up to 14 months, 12 months for a Skoda Octavia. For Hyundai, it ranges from 6 to 12 months. There is less delay at Toyota, where the most purchased models (Corolla, Yaris, Rav4) are delivered within five to seven months. And at Renault, the Clio and the Dacia are delivered after six months. These delays are still annoying to both the customer and the dealer, who only pays for delivery. “But buyers are now taking these extended terms into account, they’re no longer surprised like they were a year ago,” says Laurent Louyet, a major BMW and Mini dealer who just bought Ginion dealerships. “Now they anticipate more.” Mainly because if there are still stock models, these reserves are drying up. Before choosing, therefore, it is best to contact the dealers to find out the deadlines according to the models. The reasons for the shortage of motor vehicles add up. First there was the delay of orders to be fulfilled after the first part of the pandemic. Second, the ongoing semiconductor crisis. Operating at full capacity, this industry cannot keep up with demand. But builders are stuck: it takes months to switch suppliers. And the crisis in Ukraine adds a layer, because the country has subcontractors, especially in the manufacture of cable braids. Finally, the return of covid to China is also having an impact. The end of the tunnel? For semiconductors, maybe next year. For Ukraine, “production is approaching pre-war levels, according to airstrikes,” the Leoni group, which manufactures cable harnesses, said in a press release on May 11. , especially for the VW group. Leoni’s places in the west of the country are less affected by the conflict. The group announces that it will be able to produce in other countries. However, it seems very difficult to promise an end to the problems for all manufacturers because the conflict in Ukraine has other impacts. Volvo points out, for example, that its delays are also due to the difficulty of supplying raw materials, such as palladium from Russia. The other shortcoming that affects the sector is not the vehicles but the customers. While companies continue to demand cars, demand from individuals has dropped sharply. “We saw a drop of more than 30% in individual registrations during the first three months of the year,” said Baas Viveen, Peugeot’s manager for the Belgian market. This figure roughly matches the market data. Febiac indicates that enrollment has fallen by 27.8% for individuals during the first four months of the year (compared to 2021), and 3% for companies. “This is probably because companies are following the lease term, usually four years, and replacing office vehicles while individuals generally don’t have that deadline,” says Laurent Louyet. If the price increase weighs on your budget, they can defer your purchase. Apparent paradox: despite the drop in deliveries, the business of some manufacturers is not so bad. The VW group announced 21% fewer deliveries during the first three months of the year, but revenues identical to those of the first quarter of 2021 (ie 62,700 million euros) and … almost double of net profit. Similarly, Renault saw a 27% drop in sales and a 2.7% drop in value. Explanation: Models that are offered primarily to customers are often better equipped and more expensive, so prices are rising. The shortage is less pronounced in the second-hand market. It is true that demand has increased there, but supply is improving. “Our average prices have risen,” says Jean-Claude Gathon, founder of Soco, a major player in the Walloon car market. “We’ve lost customers but we’re gaining more,” he said. a very recent occasion due to scarcity. ” This increases the average transaction price by 12 to 15%. Feeding the offer has also become a little less complicated than it was a few months ago. The second hand is mainly fed by acquisitions in the context of the new internal market, which were delayed by shortages. “Now that the cars ordered say a year ago and they were delivered very late, they are starting to arrive, the exchanges are starting again,” says Jean-Claude Gathon. “The market is growing.”

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