Auto parts supplier Aptiv flags Southeast Asia chip constraints in third quarter
(Reuters) - Auto parts supplier Aptiv Plc is facing significant semiconductor supply constraints in the third quarter due to the fast-spreading Delta variant of the coronavirus in Southeast Asia, Chief Financial Officer Joseph Massaro said on Friday.
Given the COVID-19 outbreaks in Malaysia and Thailand, governments are taking a meaningful stance on production closures, Massaro said, speaking at the RBC Capital Markets industrials conference.
"We have had semiconductor suppliers industry wide who have been closed for a couple of weeks at a time. We had one that was closed for a couple of weeks, open for a period of time and then reclosed."
Automakers from General Motors to Japan's Toyota have slashed output and sales forecasts due to scarce chip supplies, made worse by a COVID-19 resurgence in key Asian semiconductor production hubs.
Massaro said the company had initially estimated the pandemic impact from Southeast Asia could cost the industry about 1.5 million units in the third quarter but now expects the number to be between 2 million and 3 million.
Aptiv, which makes advanced driver assistance systems and vehicle computers, counts Stellantis NV, Volkswagen AG and General Motors among its customers.
(Reporting by Sanjana Shivdas in Bengaluru; Editing by Krishna Chandra Eluri)
(c) Copyright Thomson Reuters 2021. Click For Restrictions -