Global light vehicle production grew 10% year-on-year from January to September 2021, to 54.6 million units, according to data from IHS Automotive.
In 2020, unprecedented industry disruptions related to the Covid-19 pandemic, particularly in the first half of the year, affected operations in all regions of the world.
Although industry production has improved in the first nine months of 2021 relative to 2020, production remains below recent historical levels, and production for the third quarter of 2021 decreased 19% compared to the third quarter of 2020.
More than anything, according to auto parts company Lear Corporation, this is due to the continued impact of the pandemic in 2021, particularly due to supply shortages.
The most significant supply shortage relates to semiconductor chips, which is affecting global industry production and causing planned production cancellations.
World vehicle production
In particular, during the first nine months of 2021, production disruptions negatively affected Lear’s net sales by approximately 16 percent.
Additionally, the company is experiencing rising costs related to labor shortages and inefficiencies and ongoing costs related to personal protective equipment, all of which are likely to continue over a period of time.
Increases in certain commodity costs, as well as transportation and logistics costs, are also affecting and will continue to affect your operating results for the foreseeable future.
Additionally, a resurgence of the virus or its variants, including corresponding “stay home” or similar government orders affecting industry output, could affect Lear’s financial results.
Disaggregated, at interannual rates from January to September, world light vehicle production grew 7% in North America (9.8 million units), 7% in Europe and Africa (12.3 million), 11% in Asia (29.6 million units), 28% in South America (1.8 million) and 3% in the rest of the world (1.1 million).