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Renault has warned that the car industry’s shortage of chips is getting worse and that winter storms in Texas and a fire in Japan last month are severely affecting its production schedules.
The French vehicle maker has decided not to issue any production forecasts as a result, and finance chief Clotilde Delbos said on Thursday: “We don’t want to give estimates that could go wrong very quickly.”
Renault’s overall sales fell 1.1% in the first quarter and it currently expects to lose production of “tens of thousands” of vehicles due to the problems, Delbos said. It now prioritizes the manufacture of its most cost-effective models.
“Two months ago we said we believe the peak will be in the second quarter, but we believe there will be a persistent effect in the third quarter, if not further,” Delbos said.
Vehicle manufacturers around the world have been affected by one global shortage of tokens, which began last year when suppliers diverted supply to smartphones and laptops as demand for consumer electronics grew during the pandemic.
Subsequently, the automotive industry was surprised by the rapid recovery in demand, especially in China. It has also been hit by supply chain problems caused by intense cold in Texas in February and a fire at a Japanese plant owned by Renesas Electronics, one of the largest chip manufacturers in the world for the automotive industry.
Manufacturers such as Daimler and Ford have expanded plant closures and part-time work for staff in recent days due to a shortage of chips and other parts.
Truck manufacturer Volvo also warned on Thursday about the success of its operations, which have had production shutdowns due to shortage of parts.
“The global supply chain for semiconductors and other components remains highly unstable and uncertain. . . it’s high, ”said Martin Lundstedt, executive director of the Volvo Group.
Volvo shares rose 4% after the group made higher-than-expected profits and twice as many new orders.
Renault’s first-quarter sales were affected by chip shortages and currency fluctuations. Revenue fell 1.1% to 10 billion euros, but the company said a policy of raising prices had offset part of the decline caused by the pandemic. The group prioritizes its most profitable vehicles in key markets outside Europe, such as the Kiger SUV in India and the Dacia Duster in Russia.
With the effect of currency fluctuations, sales increased 4.4%, Renault added.
But he also warned of “headwinds” stemming from foreign exchange and commodity costs and uncertainty stemming from the lack of parts.
Sales in the same period last year, when their European plants were closed due to blockages, fell to 10.1 billion euros, from 12.5 billion euros in the first quarter of 2019.
Renault is in the midst of a € 3 billion replacement plan led by CEO Luca de Meo, after losses of € 8 billion during 2020.
The plan is to reduce the capacity of the factory by a quarter and eliminate 15,000 jobs, as well as review its brands. Renault announced the sale of its 1.5% stake in Daimler for approximately 1.2 trillion euros last month.
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