PARIS (Reuters). – French auto parts manufacturer Faurecia lowered its 2021 targets, saying that it had to adapt them in light of the IHS Markit global market forecasts.

Faurecia said that IHS Markit had now estimated global car production at 72million vehicles, up from 76.8million in the past. Faurecia also noted that this drastic reduction is primarily due to the higher than anticipated impact of semiconductor shortages.

The company stated that Faurecia’s 2021 financial guidance was based explicitly on an assumption of 76.6 millions vehicles being produced over the entire year.

Faurecia sees full-year revenues of 15.5billion euros ($18.2billion) with the revised assumption of 72-million vehicles worldwide. The previous goal was 16.5billion.

After winning a bid to acquire Hella, a German lighting company, the group claims that its operating margin for 2021 will be between 6.0% and 6.2%, compared with a prior guidance of 7%.

Faurecia’s net cashflow target was also decreased to approximately 500 million Euros, as opposed to a previously set target exceeding this amount.

Faurecia explained that Faurecia’s revised guidance 2021, which was modified to reflect the dramatic drop in world automotive production to 72 millions vehicles in FY 2020, “confirms Faurecia’s strong operating leverage, effectiveness of resilience actions, and has been adjusted to account for this sharp decrease in output.”

($1 = 0.8537 euros)