Chip Crunch to Cut Renault’s 2021 Output by 500,000 Cars

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LONDON—Renault said connected Friday it would chopped output by 500,000 cars this year, much than treble its erstwhile forecast owed to a crippling planetary semiconductor shortage, but maintained its nett outlook helped by higher car prices and outgo cuts.

During a presumption to analysts, Renault Chief Financial Officer Clotlide Delbos said the carmaker’s visibility connected the spot shortage successful the 4th fourth was “still precise mediocre due to the fact that the accusation coming from suppliers is precise unreliable.”

Delbos said the spot shortage should easiness a small by the extremity of the twelvemonth with the extremity of a COVID-19 lockdown successful Malaysia, cardinal to planetary spot supplies, but said it would stay constrained passim overmuch of 2022.

When asked astir different earthy materials, she said Renault was not seeing shortages but was facing terms increases.

The shortage of chips, utilized successful everything from brake sensors to powerfulness steering to amusement systems, has led automakers astir the satellite to chopped oregon suspend production, pushing up conveyance prices.

Like its peers, Renault has focused accumulation connected much profitable models.

The French carmaker’s gloomy forecast is much than treble the 220,000 units forecast successful aboriginal September and represents astir 13 percent of the 3.75 cardinal vehicles Renault sold successful 2019 earlier the pandemic.

Sources adjacent to the steadfast told Reuters this week accumulation losses would beryllium overmuch higher than antecedently forecast.

The company’s shares were down 1.7 percent astatine 0831 GMT, the biggest faller connected the Paris blue-chip CAC-40 banal market, which was up 1 percent.

Waiting Time

The carmaker said its bid publication deed a 15-year precocious by the extremity of September for the equivalent of 2.8 months worthy of sales.

CFO Delbos said the hold clip for the Dacia Sandero, a popular, low-cost metropolis car, was present six months.

During the 3rd quarter, afloat electric, plug-in hybrid, and hybrid models made up much than 31 percent of sales, Renault said.

The carmaker is connected way to conscionable much stringent 2021 European CO2 emanation targets, it added.

Renault said third-quarter gross had fallen by 13.4 percent to 8.98 cardinal euros ($10.4 billion) from 10.37 cardinal a twelvemonth earlier, with higher car prices helping offset immoderate of the 22.3 percent driblet successful planetary sales.

The institution reiterated that its full-year operating borderline would beryllium astir the aforesaid arsenic the 2.8 percent it reported for the archetypal fractional of the year. That compared to a nonaccomplishment borderline of minus 0.8 percent.

CFO Delbos said the institution would implicit a 2 cardinal euro outgo cutting program successful coming weeks, much than a twelvemonth up of docket and aimed to velocity up further outgo cutting plans.

The carmaker said it would execute affirmative escaped currency travel for its automotive concern for 2021, excluding changes successful moving superior requirements. That currency travel people would beryllium boosted by a 930 cardinal euro dividend from its financing limb RCI Banque, Delbos said.

Renault said conveyance inventories had fallen to 340,000 cars astatine the extremity of the 4th from 470,000 a twelvemonth earlier.

By Nick Carey

Reuters

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