French car parts maker Novares seeks compensation for cancellations

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French car parts maker Novares seeks compensation for cancellations

Novares, which makes plastic parts used in one in three vehicles worldwide, is seeking compensation for the cancellations that have left its stocks piling up.

Since the start of the year, Novares has counted 2,000 sudden consumer production halts, easily one hundred with less than 48 hours notice, Novares CEO Pierre Boulet told Reuters, without saying whether the company was pursuing legal action.

The situation was particularly challenging in Europe, he added, highlighting the firm couldn't be responsible for carmakers' financial constraints.

The global chips shortage and supply chain snags have forced carmakers recovering from last year's coronavirus disruptions to again pause production as they compete for supplies with the sprawling consumer electronics industry.

Volkswagen said earlier on Friday it would reduce its November production by as much as 15%, while Toyota's Skoda Auto warned it would significantly reduce, or even suspend its production from Monday.

The automotive sector had hoped to get better by the fourth quarter, but issues related to supplying components from Asia could last into early 2022.

Some of our clients are very polite, they warn us in advance and are ready to compensate extra costs, but some just want power struggle said Boulet. We are in a selfish world.