Standstill at aluminum plant Porsche production comes to a standstill due to flooding in Valais
The storms in Valais also have consequences for Porsche. Because the Novelis company in Sierre was flooded, the luxury car manufacturer is not being supplied with aluminum alloys - and is suffering losses.
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- After the Novelis aluminum plant in Sierre VS was flooded, operations had to be shut down.
- As a result, car manufacturer Porsche has not received any alloys for its vehicles since then.
- Analysts expect a production loss of up to 17,000 cars by the end of the year.
The mud has been causing trouble at the Novelis plant in Valais for weeks: thousands of components had to be dismantled, cleaned and dried. This is necessary after the flooding in order to put the plant in Sierre back into operation, reports RTS.
The company produces aluminum alloys that are used by car manufacturers, among others. "We are under a lot of pressure to ensure that all manufacturers can continue production," says Gérard Cottier, electrical engineer at Novelis, to RTS.
Among the major brands, the situation in Sierre is having the greatest impact on Porsche. The luxury car manufacturer can no longer assemble any models due to the shutdown. Analysts expect a production loss of up to 17,000 cars by the end of the year.
On the night of July 23, the Volkswagen subsidiary lowered its sales forecast for 2024 from 40 to 42 billion euros to 39 to 40 billion euros. Porsche is not yet able to quantify the extent of the impact on production.
Concerns about jobs
For Richard Baldwin, economist at the Institute of Management Development (IMD) in Lausanne, the dependence on one supplier comes as a surprise: "The closure of a plant in Sierre threatens the entire production line." Porsche had apparently not thought about diversifying its supply chains.
In Sierre, meanwhile, there are concerns that customers could drop out. Over 500 jobs are at risk. "At the moment, customers have lost confidence in us. Jobs will only be saved once this is restored," says Novelis Director Serge Gaudin to RTS.
If everything goes as planned, Novelis will be able to put its plant back into operation by the end of September. Along with the Valais-based company, Porsche is probably also hoping that this timetable can be met.
