Aluminium crisis hits car makers

Europe (and beyond), particularly in the car industry, is facing a new crisis, namely that of aluminium. Although the impact and consequences will be decidedly less severe than those caused by the pandemic and chip shortage, the lack of this metal is already putting several manufacturers to the test.

According to reports by Automotive News Europe, the Jaguar-Land Rover Group is among the most exposed, but Porsche, BMW, Mercedes and Audi have also suffered a more or less major setback to their production.

Cause and effect

First of all, however, what caused the aluminium crisis? The torrential rain in Switzerland in the first weeks of July and the partial flooding of the Rhone forced Novelis and Constellium (two of the largest aluminium mining companies) to close their plants in Sierre and Chippis.

It is not clear when production will resume at full speed, but the situation is already having the first consequences on the production of various brands. As mentioned, the one reporting the greatest 'damage' seems to be Jaguar-Land Rover, which imports around 180,000 tonnes of aluminium per year from these companies to make its models.

The Jaguar Land Rover plant in Halewood

According to Automotive News Europe, the problem was highlighted by Richard Molyneux (Group Finance Director) during a meeting with investors. According to Molyneux, the situation in Switzerland will lead to a 'reduction in production in the current quarter and part of next quarter', but at the same time 'alternative suppliers are being sought'.

The consequences for Porsche

Things are not much better for Porsche, even though the German manufacturer says it does not have Constellium among its direct suppliers.

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In any case, the Ingolstadt-based brand could 'lose' 17,400 models in the second half of the year (around 11 per cent of deliveries in the first six months of 2024) due to aluminium supply problems, at least according to analysts at investment research firm Bernstein.

Also according to Automotive News Europe, German customer brands affected by the aluminium crisis include BMW, Mercedes and Audi, although several of these have already managed to find alternative suppliers and minimise the impact on production.

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