December 9, 2021

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Renault expects to produce 300,000 fewer chips this year

In this context, IHS Markit told Reuters that due to the semiconductor crisis, the world’s car manufacturers are likely to produce up to 11 million fewer cars this year.

French carmaker Renault expects to produce at least 300,000 cars this year due to the persistent shortage of chips. However, it is possible that the number of cars will be reduced by 400,000. Three sources familiar with the situation in the company told Reuters on Wednesday. The latest production estimate is much worse than the previous forecast.

Semiconductor shortages have forced automakers around the world to reduce or stop production. Problems with a lack of key components have also not been overcome by Renault, which in early September expected to produce nearly 220,000 fewer cars this year.

“The forecast is constantly changing, but production should be reduced by 300,000 to 400,000 vehicles,” said one of the sources. The other two sources estimate a production drop this year of 350,000 to 380,000 vehicles.

However, as analyst Pierre-Yves Cominer said, if the reduction in production was a maximum of 350 thousand cars, it would be a “success” for Renault. According to him, this means that the situation in the company will improve significantly in the fourth quarter. “That sounds very, very ambitious to me,” Koener said. In this context, IHS Markit told Reuters that due to the semiconductor crisis, the world’s car manufacturers are likely to produce up to 11 million fewer cars this year.

Even according to the French Association of the Automobile Industry (PFA), the problem of supplying chips to the auto industry could not come at a worse time. On the one hand, automakers are recovering from the consequences of the Corona crisis and on the other hand they have to invest in the transition to electric cars.

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