Chip crunch to hit Renault production more than forecast By Reuters

© Reuters. The brand of carmaker Renault is seen at a dealership in Paris, France, August 15, 2021. REUTERS/Sarah Meyssonnier

By Nick Carey

LONDON (Reuters) -French carmaker Renault (PA:) mentioned on Friday its manufacturing losses in 2021 due to a worldwide semiconductor chip scarcity can be far bigger than beforehand forecast, however maintained its revenue outlook because of excessive automobile pricing and value cuts.

The scarcity of chips, utilized in the whole lot from brake sensors to energy steering to leisure methods, has led automakers world wide to chop and even droop manufacturing, pushing up car costs.

Like its friends, Renault has targeted manufacturing on extra worthwhile fashions.

The French carmaker mentioned its manufacturing losses for the 12 months would now be near 500,000 automobiles, or greater than double the 220,000 models forecast in early September.

Sources near the agency had instructed Reuters this week that manufacturing losses can be a lot increased than beforehand forecast.

The carmaker mentioned that by the top of September its order guide had hit a 15-year excessive, for the equal of two.8 months price of gross sales.

In the course of the third quarter, absolutely electrical, plug-in hybrid and hybrid fashions made up greater than 31% of gross sales, Renault mentioned.

The carmaker is on observe to satisfy extra stringent 2021 European CO2 emission targets, it added.

Renault mentioned increased automobile costs meant that regardless of a drop of twenty-two.3% in world gross sales, third-quarter income had fallen by 13.4% to eight.98 billion euros ($10.4 billion) from 10.37 billion a 12 months earlier.

The corporate reiterated that its full-year working margin can be across the identical as the two.8% it reported for the primary half of the 12 months. That in comparison with a loss margin of minus 0.8%.

Renault mentioned car inventories had fallen to 340,000 automobiles on the finish of the quarter from 470,000 a 12 months earlier.

($1=0.8601 euros)

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