Faurecia forecast robust current-quarter sales growth on Monday, after surging sales in China helped the French car parts supplier beat market expectations in the first three months of the year.
Faurecia, which supplies seats, dashboards and fuel systems to automakers, posted double-digit organic sales growth across its major divisions, with an 88 percent jump in China from the year-earlier period, taking sales there to significantly above pre-pandemic levels.
In a call with analysts, finance chief Michel Favre noted that car production was still very low compared with 2019, before the pandemic shut factories, restricted travel and triggered a global shortage in semiconductor chips.
"When semiconductors will be available, I would say that things will restart at a very, very, dynamic pace," he said.
Automakers are competing for chips with the sprawling consumer electronics industry, amid a pandemic-led surge in demand for phones, TVs and gaming consoles.
The shortage has forced some of Faurecia's customers, such as Stellantis, to cut production.