LISI GROUP - Integrated report 2021

LISI – 2021 INTEGRATED REPORT — 73 Interviewwith François Liotard CEO, LISI AUTOMOTIVE What can we learn from 2021? Among the structuring elements of the year, some were known and identified, such as the acceleration of the automotive market’s transition to electric. Others, such as the disruption of supply chains caused by tensions in semiconductors, appeared more unpredictably during the year. Regarding the intensified electrification of automotive powertrains, the trend is very strong in China, but also in Europe, where the share of electric vehicles and plug-in hybrids reaches almost 20% of sales. The transition from project to reality was very quick. The European regulatory pressure initiated as part of the “Fit for 55” cycle will force manufacturers to switch massively to low-carbon electric vehicles in less than ten years. We had integrated this timeline and we are prepared for it. The disruption of the supply chain, on the other hand, is completely new: for the first time in the history of the automotive sector, industrial supply was brought to a halt by shortages of electronic components usually delivered “just in time”. Semiconductor shortages seized up the supply chain at the end of February 2021. The disturbances reached a peak at the start of the school year in September. This paralysis prevented manufacturers from producing the equivalent of 11 million vehicles, which should have been sold if it hadn’t been for this incident. If things have been better since the beginning of 2022, the normal level of production will not be reached before the fall. A third structuring factor disrupted the market, namely the strong inflationary surge which is impacting energy and all raw materials. Long steels have increased by In a global automotive market hard hit by the slowdown in production, the division’s sales increased by 7.4%, which confirms our ability to gainmarket share in a degraded environment.”

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