Renault expects production shortage of half a million cars

Renault expects production shortage of half a million cars

Things are not looking too good at Renault. Due to shortages of parts, the car manufacturer expects to produce half a million fewer cars this year than was previously the target. That production deficit is larger than what the French had previously taken into account.

Last summer Renault assumed that the loss in produced cars would be limited to 200,000 copies. That number appears to be a conservative estimate, now that Renault ‘missed’ 170,000 cars in the third quarter alone due to the shortages. The chip shortage is currently the biggest bummer. The sales of Groupe Renault also suffer from this: partly due to these problems, sales of brands such as Renault, Dacia and Lada remained at just over 599,000 units in the past quarter. That is more than 20 percent less than in the same period last year.

The loss of turnover remained somewhat limited because Renault mainly sold more expensive models. As a result, total revenues in the third quarter decreased by 13 percent to 9 billion euros compared to 2020. Renault did not communicate exact profit figures in the quarterly report. CFO Clotilde Delbos did add that Renault has continued to cut costs to maintain profitability. This is also part of the car manufacturer’s ‘Renaulution’ strategy announced at the beginning of this year.

– Thanks for information from Autoweek.nl

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