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Chip crunch that Reuters hits Renault’s production more than expected

© Reuters. The car maker’s Renault logo will be seen at dealers in Paris, France, on August 15, 2021.Reuters / Sara Maisonier

By Nick Carey

London (Reuters)-French car maker Renault (PA :) On Friday, it said that 2021 production losses due to a global shortage of semiconductor chips would be much higher than previously predicted, but maintained its profit outlook thanks to high car prices and cost savings.

Due to the lack of chips used in everything from brake sensors to power steering to entertainment systems, automakers around the world are cutting or shutting down production and pushing up vehicle prices.

Like its peers, Renault has focused its production on more profitable models.

French automakers say production losses this year are now close to 500,000, more than double the 220,000 forecast in early September.

A source close to the company told Reuters this week that production losses would be much higher than previously predicted.

By the end of September, the automaker said the purchase order had hit a 15-year high, equivalent to 2.8 months of sales.

According to Renault, fully electric plug-in hybrid and hybrid models accounted for more than 31% of sales in the third quarter.

Automakers have added that they are on track to meet the stricter 2021 European CO2 emission targets.

Renault said the rise in car prices was € 8.98 billion (104), a 13.4% decrease in third-quarter sales from € 10.37 billion in the previous year, despite a 22.3% decrease in global sales. It means that it has reached 100 million dollars).

The company reiterated that its full-year operating margin would be about the same as the 2.8% reported in the first half of the year. Compared to a loss margin of minus 0.8%.

Renault said vehicle inventories at the end of the quarter fell from 470,000 in the previous year to 340,000.

($ 1 = 0.8601 euros)

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Chip crunch that Reuters hits Renault’s production more than expected

Source link Chip crunch that Reuters hits Renault’s production more than expected

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