Porsche is facing production snags after a flood at an aluminum supplier’s facility spurred a shortage of the material, according to a half-year 2024 financial forecast.
The issues are impacting the automaker’s entire production line as body components made from the metal are “used in all vehicle series manufactured by Porsche,” according to the report. The shortages led the automaker to adjust its financial outlook for 2024, and it now expects to generate revenues between 39 billion and 40 billion euros.
Although Porsche has implemented countermeasures, the disruptions are expected to continue.
“These are expected to last several weeks and may possibly lead to production shutdowns of one or more vehicle series,” per the forecast. “It is to be expected that the resulting delays in the production and delivery of vehicles will not be fully compensated for in the further course of the financial year.”
Porsche has been hit with sourcing challenges over the last few years, with a 2023 annual and sustainability report from automaker noting a “dramatic change” in the procurement industry.
While it is unclear how the automaker is navigating the ongoing aluminum supply issue, Barbara Frenkel, a member of the executive board for procurement at Porsche AG, said in the report that dual sourcing and “prioritizing certain cars in production is another sensible option for getting through any shortages.”
For instance, when Ukraine-based wiring harness suppliers were impacted by the Russia-Ukraine war, Porsche set up the systems and tools to procure those components from other countries, per the sustainability report.
“Especially when there’s a crisis, there’s more than one solution in procurement,” Frenkel said. “We’ve developed a whole host of measures for better securing the supply and we continue to expand and optimize them.”
