Renault doubles estimate for lost production as chip crisis deepens

Date:

Renault warned that a shortage of chips in the industry would hurt production far more than French automakers feared just two months ago.

The company announced on Friday that it plans to produce about 500,000 vehicles this year, significantly lower than the group’s forecast of 220,000 lost vehicles in early September.

Darker forecasts were made as Renault reported a sharp decline in sales in the third quarter. Revenues for the quarter were € 9 billion, down 13.4% from the year-ago quarter, well below the € 11.3 billion generated in the same quarter of 2019 before the pandemic.

Automakers from Volkswagen to Toyota were forced to cut production due to a shortage of semiconductors, causing the industry to lose millions of cars, and at the time the auto group was hoping for a major recovery after the pandemic. rice field.

Renault’s third-quarter sales are tough compared to 2020, boosted by stagnant demand, as well as resistance from a chip shortage in which automakers face fierce competition from the consumer electronics group. was.

Renault, which has not disclosed profitability in the first and third quarters despite lower sales, said it expects profit margins in the second half to be comparable to the 2.8% reported in the first half of this year. rice field.

Chief Financial Officer Clotilde Delbos said the forecast was made “despite component availability in the third quarter and visibility in the fourth quarter.”

Although disrupting production, the chip shortage previously helped automakers improve prices by eliminating the need for discounts as rival makers chased higher sales.

Renault said current order bank sales are 2.8 months, the highest level in 15 years.

Renault doubles estimate for lost production as chip crisis deepens Source link Renault doubles estimate for lost production as chip crisis deepens

The post Renault doubles estimate for lost production as chip crisis deepens appeared first on California News Times.

Source link

LEAVE A REPLY

Please enter your comment!
Please enter your name here

Share post:

Popular

More like this
Related

European stocks close sharply lower after cautious session

Investors remained broadly cautious ahead...

Noses Might Be Kids' Secret Weapon Against COVID

$(function(){ require(,function(webmd_threestackmetrics){ webmd_threestackmetrics.init(); }); }); { "@context": "https://schema.org/", "@type": "NewsArticle", "mainEntityOfPage": "https://www.webmd.com/lung/news/20220809/noses-might-be-kids-secret-weapon-against-covid", "datePublished": "08/09/2022...

Man behind MTWichita out for health reasons – Wichita, Kansas

Wichita, Kansas 2022-08-09 12:39:46 – WICHITA, Kansas (KSNW) —...

New “Langya” Virus in China Infects 35 People…”More Fatal” than COVID

  According to the New England Journal of Medicine, a...