Chip shortage affects Renault production and sales in Q3
07:17, 22 October 2021
Renault Group has reported a large reduction in sales for the third quarter due to a combination of production shutdowns and the crisis caused by an insufficient global supply of semi-conductor chips.
In a trading statement today, Renault revealed that group revenues amounted to €9bn ($10.5bn) for the quarter, down 13.4%. It also said that it had sold 599,027 vehicles in the third quarter of 2021, a decrease of 22.3% compared to the same period in 2020.
The group's sales in Europe – which make up 53% of total sales – were down by 26.3%, while international sales fell by 17.3%.
Half a million fewer vehicles
Renault estimated that lost production due to a lack of components during the third quarter resulted in 170,000 fewer units being produced. The group anticipates an overall decline in production of close to 500,000 vehicles for the year.
In Europe, sales of E-TECH 4 passenger cars were up by 29%, representing 31.3% of sales in the quarter.
Despite the increase in estimated production losses for the year, Renault confirmed its guidance to reach a full-year group operating margin rate “of the same order” as that seen its first half. The group is also targeting a positive automotive operational free cash flow, excluding change in working capital requirements, for the financial year.
The sales and production numbers didn’t help Renault’s shares today – in early morning trading in Paris the share price had fallen 1.28% to €30.95.
Read more: ‘UK supply shortages concerns highest since 1970s’ - CBI
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