Renault will reduce its car production by 500,000 in this year’s fiscal year because there is a severe shortage of semiconductors worldwide.
Clotilde Delbos, the finance chief at the car maker, stated that planning for chip deliveries was still very poor due to insufficient information from suppliers.
However, the rising price of cars and cost cutting mean it is still on course to hit profit targets.
Good sign: Renault’s rising prices and cost cutting indicate that they are still on track to achieve their profit targets
Delbos indicated that the chip shortage could ease somewhat by the end the year, with the expiration of the Covid-19 lockdown from Malaysia, which was central to global supply of chip supplies.
The shortage of chips used in everything, from power steering to entertainment system, has caused car makers to reduce or stop production, driving up prices.