Renault expects to manufacture around 500,000 fewer vehicles than anticipated this year due to a global shortage of electronic components, the French auto group said on Friday. The coronavirus pandemic has disrupted supply chains around the world, leading to bottlenecks in the components, wood, plastics and steel markets, crippling many industries. “The group anticipates a loss close to 500,000 vehicles for the year,” it said in a statement after posting third quarter results. Renault said it was unable to produce 170,000 planned vehicles in the three months to September as many factories around the world are shut due to the lack of components, particularly semiconductors. The group sold just over 599,000 vehicles in the third quarter, down 22.3% compared to the same period in 2020 when the auto industry re-emerged from months of pandemic-induced paralysis. But Renault nevertheless confirmed its forecast of reaching a full year operating margin of 2.8% of turnover.
Published in The Express Tribune, October 23rd, 2021.
Like Business on Facebook, follow @TribuneBiz on Twitter to stay informed and join in the conversation.
COMMENTS
Comments are moderated and generally will be posted if they are on-topic and not abusive.
For more information, please see our Comments FAQ