Rating agency Moodys has upgraded the outlook on Tata Motors Ltd (TML) from “negative” to “stable” due to continued recovery in the firm s consolidated revenue and profitability. The recovery is from the trough during the pandemic in the first quarter of the fiscal year ended March 2021. It is expected to sustain over the next 12-18 months, along with strengthening of TML s credit metrics, according to Moody s. At the same time, Moody s has affirmed TML s B1 corporate family rating (CFR) and B1 senior unsecured ratings. Today s action follows Moody s affirmation and change in outlook to stable from negative on the B1 ratings of TML s wholly-owned UK subsidiary, Jaguar Land Rover Automotive Plc (JLR) earlier this week. JLR constitutes half of TML s global unit sales, but accounts for almost 80 per cent of TML s consolidated revenues and adjusted EBITDA.
Synopsis
Demand for semiconductors was boosted in 2020 as consumers scooped up home gadgets during the pandemic. But meeting that increase has been hard, thanks to shuttered plants, among other factors.
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The supply constraints are hitting a wide array of industries, with tech firms and automakers alike flagging production cuts and lost revenue from the fallout.
The global semiconductor shortage roiling a wide range of industries likely won’t be resolved for a few more years, according to Intel Corp.’s new Chief Executive Officer Pat Gelsinger.
The company is reworking some of its factories to increase production and address the chip shortage in the auto industry, he said in an interview with CBS News, based on snippets from its “60 Minutes” program. It may take at least several months for the strain on supply to even begin easing, he added.
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The global semiconductor shortage roiling a wide range of industries likely won’t be resolved for a few more years, according to Intel Corp.’s new CEO Pat Gelsinger.
The company is reworking some of its factories to increase production and address the chip shortage in the auto industry, he said in an interview with CBS News, based on a transcript of “60 Minutes” that aired Sunday. It may take at least several months for the strain on supply to even begin easing, he added.
“We have a couple of years until we catch up to this surging demand across every aspect of the business,” Gelsinger said.
Intel CEO says chip shortage will persist for couple of years autonews.com - get the latest breaking news, showbiz & celebrity photos, sport news & rumours, viral videos and top stories from autonews.com Daily Mail and Mail on Sunday newspapers.
Synopsis
The shortfall of critically needed semiconductors has forced the entire auto industry to cut output, leaving thin inventories at dealerships just as consumers emerge from Covid-19 lockdowns.
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Ford expects a $2.5 billion hit to earnings due to scarce chip supplies.
The global chip shortage is going from bad to worse with automakers on three continents joining tech giants Apple Inc. and Samsung Electronics Co. in flagging production cuts and lost revenue from the crisis.
In a dizzying 12-hour stretch, Honda Motor Co. said it will halt production at three plants in Japan; BMW AG cut shifts at factories in Germany and England; and Ford Motor Co. reduced its full-year earnings forecast due to the scarcity of chips it sees extending into next year. Caterpillar Inc. later flagged it may be unable to meet demand for machinery used by the construction and mining industries.