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Voestalpine sees lower auto industry demand continuing into 2019

Steel News - Published on Thu, 08 Nov 2018

Image Source: Wikimedia
Reuters reported that Austrian speciality steelmaker Voestalpine is preparing for lower demand from its auto industry customers to continue in the second half of its 2018/19 business year. CEO Dr Wolfgang Eder told “We see a fairly significant cooling down in the European auto sector. Demand from the industry has significantly declined since late summer largely due to new pollution rules. While car manufacturers are busy with the upgrades, they are building and selling fewer new cars. This will drag on throughout the second half of this business year.”

The CEO hopes to get an indication of when to expect demand to increase again in December, when carmakers close their plants for Christmas. The more spare cars an automaker has, the longer he expects the factory holidays to be.

Eder’s assessment follows some big carmakers including Daimler and BMW warning of lower profit as they shoulder heavy investments to overhaul combustion engines to meet the more stringent emissions standard WLTP. The Worldwide Harmonised Light Vehicle Test (WLTP) is the European Union’s new fuel efficiency rating for all petrol, diesel, electric and hybrid cars, in place since September.

Voestalpine produces high quality flat steel components and finished parts for mainly German carmakers and has followed them in expanding production overseas in recent years. It generates around one-third of group sales from automakers such as Daimler, BMW and VW and its first-half earnings have fallen in part due to lower deliveries to them.

Source :

Posted By : Sanju Moirangthem on Thu, 08 Nov 2018
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