Renault Forecasts Production Fall On Shortages

Renault expects to manufacture around 500,000 fewer vehicles than anticipated this year due to a global shortage in electronic components, the French auto group said 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 semi-conductors.

The group sold just over 599,000 vehicles in the third quarter, down 22.3 percent compared to the same period in 2020

The group sold just over 599,000 vehicles in the third quarter, down 22.3 percent 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 -- an indicator of how efficient a group is at generating profit from sales -- of 2.8 percent of turnover.

"The actions taken to further lower costs and maximise the value of our production allow us to confirm our guidance for the year despite the deterioration in components availability in the third quarter and reduced visibility for the fourth quarter," chief financial officer Clotilde Delbos said in a statement.