Renault production may decline further over global chip shortage crisis

By Akshay Kedari  Date: 2021-10-22

Renault production may decline further over global chip shortage crisis

For a while now, automobile manufacturers have started cutting production owing to the global chip shortage crisis. One such automaker, Renault, which expects to publish its Q3 sales soon, also announced of producing a minimum of 300,000 fewer vehicles this year.

This could bring the total cut in production to about half a million cars for Renault. The supply issues would cost the French automaker over a third more than the 220,000 lost automobiles it predicted earlier, sources claimed.

Renault’s Paris-listed shares recently witnessed a drop of 4%, while those of European rivals including Volkswagen, BMW, and Stellantis, all of which faced production cut, tumbled by 1% to 4%.

Although these predictions could keep altering, the shortfall will be between 300,000 and 400,00 vehicles. It would account for at least 8% of Renault's pre-pandemic 2019 sales of 3.75 million vehicles. Some experts estimated that the output drop will be between 350,000 and 380,000 automobiles.

However, it would be an achievement if the company manages to limit the shortfall to 350,000 vehicles. It would indicate that they would significantly improve the situation in the fourth quarter.

The chip crunch comes at a time when the auto manufactures recover from the outbreak of the COVID-19 pandemic and look to transform towards producing all-electric vehicles.

Renault claims that by 2030, electric vehicles will account for up to 90% of its brand sales. This year, all cars produced in the European Union must comply with EU legislation limiting average CO2 emissions from new cars to 95 grams per kilometer or risk stiff penalties.

The automotive chip shortage, which began late last year when consumer demand for personal gadgets skyrocketed due to pandemic lockdowns, is expected to extend until 2022.

Source Credits-

https://www.moneycontrol.com/news/technology/auto/renault-eyes-bigger-production-cut-as-chip-shortage-rumbles-on-7605881.html

About Author

Akshay Kedari     aeresearch.net

Akshay Kedari

A qualified computer engineering graduate, Akshay Kedari takes pride in having his way with words. Following his passion for content creation, he writes insightful pieces on aeresearch.net and a few other portals. Also endorsed with a short-term experience in web deve...

Read More

More News By Akshay Kedari

Twitch launches ‘Suspicious User Detection’ tool to track ban evaders

Twitch launches ‘Suspicious User Detection’ tool to track ban evaders

By Akshay Kedari

Twitch is reportedly stepping up its efforts to curtail harassment, with a new tool powered by machine learning to identify people who could be trying to avoid bans. It is the company’s most recent addition for dealing with issues like hate rai...

Thermo Fisher claims its tests can detect Omicron variant accurately

Thermo Fisher claims its tests can detect Omicron variant accurately

By Akshay Kedari

The emergence of the Omicron variant of coronavirus, which has forced some countries to once again seal off their borders, is being seen as a catalyst to prolonging the pandemic. The accurate detection of the variant is a major concern, however, Ther...

Motorway obtains unicorn status following a USD 190 Mn Series C funding

Motorway obtains unicorn status following a USD 190 Mn Series C funding

By Akshay Kedari

U.K-based secondhand car auction platform Motorway has reportedly secured USD 190 million in Series C funding round. This has allowed the startup to acquire a unicorn status, with a total valuation of more than USD 1 billion. The funding round was l...

Spotify found testing TikTok-style short vertical video feed in its app

Spotify found testing TikTok-style short vertical video feed in its app

By Akshay Kedari

Spotify is reportedly testing a TikTok-style vertical video feature in its popular music streaming app.  The option will allow users to scroll through the vertical music videos as well as either like them or skip them. Sources claimed that this...

General Motors to deliver Hummer electric pickups starting December

General Motors to deliver Hummer electric pickups starting December

By Akshay Kedari

Edition 1 model of Hummer pickup accounted for 80% of the total reservation. The EV pickup truck boasts a driving range of 329 miles. Automotive giant General Motors Co will reportedly start the delivery of its GMC hummer EV from December onward...