Due to an unexpected lack of aluminum metal, Porsche AG lowered its sales and profit forecast on Tuesday. This caused the German company’s shares to drop 4% and fall to the bottom of Frankfurt’s blue-chip index.
The luxury sports car maker said that flooding at an unnamed European contractor has cut off its supply of aluminum alloy. This has affected the production of all of its models and could cause one or more vehicle lines to be shut down.
Porsche said that the alloy supplier, which it did not name, had written that it was unable to meet its contractual duties because of things that were out of its control.
Novelis, a unit of Hindalco Industries, said it had to shut down its plant in late June because of a “force majeure” event. It was a supplier of aluminum to a joint venture that Porsche owns a stake in.
