Renault CEO warns semiconductor crunch to ripple through 2022

A shortage of automotive chips that began late last year as consumer demand for personal devices soared amid pandemic lockdowns has persisted through 2021.The crisis could lower Renault’s output this year by at least 100,000 vehicles.
By : Bloomberg
| Updated on: 08 Jul 2021, 10:20 AM
FILE PHOTO: The logo of carmaker Renault is pictured at a dealership in Vertou, near Nantes, France. (REUTERS)
FILE PHOTO: The logo of carmaker Renault is pictured at a dealership in Vertou, near Nantes, France. (REUTERS)
FILE PHOTO: The logo of carmaker Renault is pictured at a dealership in Vertou, near Nantes, France. (REUTERS)
FILE PHOTO: The logo of carmaker Renault is pictured at a dealership in Vertou, near Nantes, France.

Renault SA Chief Executive Officer Luca de Meo said the effects of the global semiconductor shortage will be felt through next year, a warning that doesn’t bode well for a recovery in auto production.

Major suppliers have cautioned Renault that the shortage is “a structural thing that will be with us through 2022," de Meo said Wednesday on the sidelines of a French parliamentary hearing. “There will be tension in the system even if production capacity is improving."

Similar Cars

Find More Cars
Renault Kwid (HT Auto photo)
Renault Kwid
799 cc | Petrol | Manual | 25 kmpl
₹4.07 - 5.51 Lakhs**Ex-showroom price
Renault Triber (HT Auto photo)
Renault Triber
999 cc | Petrol | Manual | 19 kmpl
₹5.12 - 7.98 Lakhs**Ex-showroom price
Renault Kiger (HT Auto photo)
Renault Kiger
999 cc | Petrol | Manual
₹5.45 - 10.09 Lakhs**Ex-showroom price
Renault Renaultkze (HT Auto photo)
UPCOMING
Renault Renaultkze
Electric | Automatic
₹6 - 10 Lakhs* *Expected Price
Renault City K-ze (HT Auto photo)
UPCOMING
Renault City K-ze
Electric | Automatic
₹6 - 10 Lakhs* *Expected Price
Renault Duster (HT Auto photo)
Renault Duster
1498 cc | Petrol | Manual | 14.19 kmpl
₹9.39 - 14.28 Lakhs**Ex-showroom price

The comments indicate the supply crunch, which many carmakers including Renault expected to peak during the second quarter, could continue to weigh on auto output for longer. Daimler AG and Jaguar Land Rover this week said that sales will be further crimped on chip supply shortfalls. The British automaker flagged deliveries in the second quarter will be 50% worse than initially expected, while BMW AG on Wednesday said it may face further adjustments to production for the remainder of the year.

(Also read | Renault to sell 9 electric vehicles out of 10 by 2030, launch 10 new EVs by 2025)

“We’ve managed in the first half, but of course we have lost volumes," de Meo said. What is frustrating for the industry is that visibility on supplies “changes every week," he said.

Mercedes-Benz, the world’s biggest luxury-car brand, said Tuesday that deliveries during the second quarter were “significantly" curtailed by a lack of chips. De Meo has said the crisis could lower Renault’s output this year by at least 100,000 vehicles, a number he declined to comment on Wednesday.

A shortage of automotive chips that began late last year as consumer demand for personal devices soared amid pandemic lockdowns has persisted through 2021. The dearth is threatening to slash $110 billion in sales from the car industry, consulting firm AlixPartners forecast in May, and has forced auto manufacturers to overhaul the way they get the electronic components.

First Published Date: 08 Jul 2021, 10:20 AM IST
Recommended For You
View All
NEXT ARTICLE BEGINS

Please provide your details to get Personalized Offers on

Choose city
+91 | Choose city
Choose city
Choose city
By clicking VIEW OFFERS you Agree to our Terms and Privacy Policy

Dear Name

Please verify your mobile number.

+91 | Choose city