From <a href="https://www.zerohedge.com/"Zero Hedge
Supply Chain Chaos Continues Wreaking Havoc in European Auto Stocks
More than two years after the beginning of Covid, the auto industry remains in chaos…
Today, the focus is on European auto stocks, which are going to be on watch heading into the new week after automakers had their worst June sales “in decades”, according to a Monday morning wrap up by Bloomberg.
Names like Faurecia, Volvo Car and Michelin were down between 2% and 6% to start the week after ugly June sales data for the UK and German new car registrations falling off a cliff.
The UK saw its weakest June since 1996, Auto Express reported Monday. The Society of Motor Manufacturers and Traders is still attributing the sales drop to the “ongoing global shortage of semiconductors” mixed with China’s implementation of severe Covid restrictions.
EVs, however, saw a 14.6% increase in sales and have seen their market share rise from 10.7% in June 2021 to 16.1% in June 2022.
“The semiconductor shortage is stifling the new car market even more than last year’s lockdown. Electric vehicle demand continues to be the one bright spot, as more electric cars than ever take to the road, but while this growth is welcome it is not yet enough to offset weak overall volumes, which has huge implications for fleet renewal and our ability to meet overall carbon reduction targets,” said Mike Hawes, chief executive of the SMMT.
He continued: “With motorists facing rising fuel costs, however, the switch to an electric car makes ever more sense and the industry is working hard to improve supply and prioritize deliveries of these new technologies given the savings they can afford drivers.”
And the chaos shows no immediate signs of letting up. As Bloomberg notes, Volvo has already warned that China shutdowns will have a negative impact on its third quarter sales.