A massive vehicle recall by four Japanese automakers because of faulty airbags underscores the perils of huge global supply chains as companies increasingly rely on a handful of suppliers for common or similar parts.
AvtoVAZ, Russia's largest carmaker, will cut its 2013 sales and production forecasts due to the weak state of its home market, the company's CEO said. "We saw a certain decline in sales in March," Igor Komarov said.
Daimler and other global automakers will probably have to lower their forecasts after demand in Germany dropped the most in 2 1/2 years. The plunge in the German market is prompting companies to increase discounting, in turn pressuring earnings.
Volvo is set to report an operating loss in China for 2012 of between 2 billion to 4 billion Swedish crowns ($308 million to $615 million) as weak car sales and a costly new factory weighed on results, a Swedish daily newspaper reported on Thursday.