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Chip shortage affects Renault production and sales in Q3

By David Burrows

07:17, 22 October 2021

Renault dealership. Photo: Shutterstock
Renault dealership – Photo: Shutterstock

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.


33,120.00 Price
+1.070% 1D Chg, %
Long position overnight fee -0.0255%
Short position overnight fee 0.0032%
Overnight fee time 21:00 (UTC)
Spread 11


4,211.50 Price
+1.470% 1D Chg, %
Long position overnight fee -0.0255%
Short position overnight fee 0.0032%
Overnight fee time 21:00 (UTC)
Spread 1.7


31,515.00 Price
+1.420% 1D Chg, %
Long position overnight fee -0.0109%
Short position overnight fee -0.0113%
Overnight fee time 21:00 (UTC)
Spread 24


14,326.80 Price
+2.750% 1D Chg, %
Long position overnight fee -0.0255%
Short position overnight fee 0.0032%
Overnight fee time 21:00 (UTC)
Spread 3.0

Read more: ‘UK supply shortages concerns highest since 1970s’ - CBI  

The difference between stocks and CFDs

The main difference between CFD trading and stock trading is that you don’t own the underlying stock when you trade on an individual stock CFD.

With CFDs, you never actually buy or sell the underlying asset that you’ve chosen to trade. You can still benefit if the market moves in your favour, or make a loss if it moves against you. However, with traditional stock trading you enter a contract to exchange the legal ownership of the individual shares for money, and you own this equity.

CFDs are leveraged products, which means that you only need to deposit a percentage of the full value of the CFD trade in order to open a position. But with traditional stock trading, you buy the shares for the full amount. In the UK, there is no stamp duty on CFD trading, but there is when you buy stocks.

CFDs attract overnight costs to hold the trades, (unless you use 1-1 leverage)

which makes them more suited to short-term trading opportunities. Stocks are more normally bought and held for longer. You might also pay a stockbroker commission or fees when buying and selling stocks.

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