The owner of car brands like Fiat and Peugeot said in a statement on Thursday that improved semiconductor supplies helped to boost sales volumes, which led to a 29% increase in Stellantis’ third-quarter revenues.

But as the shortage of semiconductors eased, other supply chain problems emerged, particularly in Europe’s logistics, affecting the third-largest automaker in the world today.

The group’s vehicle inventory stock increased as a result, according to Stellantis Chief Financial Officer Richard Palmer, who also noted that the industry as a whole was experiencing a shortage of trucks and drivers.

“These issues have impacted our ability to convert our strong order portfolio into sales in Europe,” Palmer said presenting Stellantis third quarter revenue data to reporters.

“We expect obviously to resolve those going into the fourth quarter,” he added.

Stellantis’ Milan-listed shares were down 1.8%, roughly in line with the European Automotive Stock Index.

Despite the rise, Stellantis inventories were still below average, according to Martino De Ambroggi, an analyst at Milan-based broker Equita, “which leaves room for maintaining positive price-mix at least in the short-term.”

Due to high car prices, German premium automaker BMW on Thursday posted a better-than-anticipated quarterly net profit but cautioned that in the coming months, sales would start to suffer from rising inflation and interest rates.

The level of concern has decreased compared to a few months ago because “everyone is taking action,” according to Palmer, who added that the company currently sees “no red light flashing” regarding potential energy constraints affecting its supply chain.

“If the winter is normal, let’s say, then I think we’re reasonably confident that we can manage production without any significant interruptions,” Palmer said.

He acknowledged that there might be a risk with Stellantis’ “very extensive supply chain,” though.

“Small hiccups in suppliers can create big complexities for us in terms of the completion of vehicles,” he said.

In the months of July through September, Stellantis’ net revenues totaled 42.1 billion euros ($41.3 billion), exceeding the 40.9 billion euros that analysts had predicted, according to a Reuters poll.

The company also said that favorable exchange rates and strong pricing helped to support revenue growth.

According to Stellantis, combined shipments increased 13% in the most recent quarter to 1.281 million units, confirming analysts’ predictions for a double-digit margin on adjusted operating profit and positive industrial free cash flow this year.

Battery electric vehicle (BEV) sales for the group increased 41% year over year to 68,000 units.

(Adapted from ThePrint.in)