LONDON — The worldwide chip scarcity is continuous to wreak havoc on the automotive sector, with a number of of the world’s largest carmakers blaming the disaster for disappointing monetary outcomes this week.

Volkswagen and Stellantis stated Thursday that the continued semiconductor scarcity stays a significant downside for them.

“It was a difficult quarter,” VW CEO Herbert Diess informed CNBC’s “Squawk Field Europe” Thursday.

“Our quantity manufacturers suffered most due to semiconductor provide,” Diess stated, referring to Seat, Skoda and Volkswagen.

Compared, Porsche and Audi (Volkswagen’s premium manufacturers) have been “fairly resilient,” Diess stated, including that they’ve delivered optimistic outcomes.

With no sign of ending, the semiconductor chip scarcity is now anticipated to value the worldwide automotive business $210 billion in income in 2021, in keeping with consulting agency AlixPartners.

From a geographic perspective, Diess confirmed that VW’s China enterprise has been disproportionately affected.

“China actually suffered,” he stated, including that VW misplaced market share within the nation.

The group prioritized its premium manufacturers in China and “compromised” on quantity gross sales, Diess stated, including that the VW model “suffered loads.”

The German carmaker reduce its outlook for deliveries, toned down gross sales expectations and warned of value cuts because it reported lower-than-expected working revenue for the quarter.

However Diess claimed that it is not all adverse. “The demand aspect is de facto good,” he stated. “We’ve got stuffed order books in all areas and our EV [electric vehicle] gross sales are coming alongside properly.”

“We needed to cut back our gross sales outlook however income outlook continues to be optimistic and [it has been] considerably rising during the last 12 months,” Diess stated. “Which means we are able to preserve our margin steerage, which is essential.”

Diess is optimistic that semiconductor provide will decide up within the subsequent quarter, however he nonetheless expects to see some provide constraints in 2022.

“We foresee that semiconductors will likely be bottlenecks in our provide chain,” he stated. “There could be others as properly, however principally we are going to see semiconductor constraints.”

Elsewhere, Stellantis — shaped by way of the merger of Fiat Chrysler and France’s PSA — has additionally been harm by the chip scarcity.

Like VW, it additionally missed analyst expectations when it reported its third-quarter outcomes Thursday. It reported a 14% fall in third-quarter income on a pro-forma foundation after semiconductor shortages reduce deliberate quarterly manufacturing by 30%, or 600,000 automobiles.

“The extent of chip scarcity was in all probability barely larger than what we had anticipated after we final spoke to the market in August,” Chief Monetary Officer Richard Palmer stated, including that the full-year complete of misplaced manufacturing as a result of chip scarcity would high a earlier forecast of 1.4 million items.

However Palmer stated the enterprise has seen a “average” enchancment on the chip provide scenario this month in comparison with September. He expects the pattern to proceed by way of the fourth quarter.

“Visibility on semiconductors continues to be a tough topic for the business,” Palmer added.

Analysts at JPMorgan and UBS consider now could be the best time for traders to extend their publicity to the automotive sector.

“Time to extend the publicity to auto shares, in our view,” stated a UBS analyst group led by Patrick Hummel in a notice on Oct. 8.

JPMorgan’s head of European autos fairness analysis, Jose Asumendi, informed CNBC Wednesday that he and his group have been telling traders to extend their publicity to autos for round a month.

“We’re fairly selective by way of the place we see worth,” Asumendi stated, including that Daimler, Renault and Stellantis are the financial institution’s high inventory picks among the many European carmakers.

On the opposite aspect of the Atlantic, U.S. carmakers GM and Ford managed to beat analyst expectations regardless of the chip scarcity.

Ford shocked business watchers Wednesday when it shattered Wall Avenue’s earnings expectations for the third quarter and it stated it has already benefited from improved provide of chips.

In the meantime, GM CEO and Chair Mary Barra stated throughout a name Wednesday that the automaker’s provide of semiconductor chips is enhancing, however “it nonetheless continues to be considerably unstable.” She stated GM expects the scarcity to proceed into the primary half of subsequent 12 months.

Whereas many automobile firms have been posting disappointing outcomes, chipmakers have seen their revenues soar as lots of them elevated the costs of the merchandise.

France’s STMicro, which makes chips for the likes of Tesla, delivered sturdy third-quarter outcomes Thursday and it expects the subsequent quarter to be even higher because of demand from the automotive market.

“We wish to be a pacesetter within the subject of automotive,” STMicro President Jean-Marc Chery informed CNBC’s “Squawk Field Europe” Thursday.

“We do consider that the scenario in 2022 will actually enhance definitively in comparison with 2021,” he stated, including that chipmakers had been caught off guard when demand for automotive chips peaked firstly of 2021.

“The scenario will enhance in 2022,” he stated. “I count on we are going to return to a scenario the place you’ll have the best steadiness between stock degree, acceptable lead instances, [but] not earlier than 2023.”

Correction: This story has been up to date with the right identify for the president of STMicro.