Renault will lose out on far more car production this year than previously anticipated due to the crippling global chip shortage, another obstacle to the carmaker’s turnaround plans.
The French manufacturer will make close to 500,000 fewer vehicles in 2021 due to a lack of components, according to a statement Friday.
Renault predicted a shortfall of roughly 200,000 in July.
Despite the disruptions, the manufacturer kept its margin target for the year and expects positive automotive operational free cash flow, excluding change in working capital requirements.
Third-quarter sales fell 13% to 9 billion euros (R153 billion).
The shortage of semiconductors needed to make new vehicles has hurt automakers across the globe, forcing factory shutdowns and delays with some launches of new models.
Car sales in Europe are on course to fall even below the depressed levels in 2020, when pandemic restrictions choked deliveries.
Renault Chief Executive Officer Luca de Meo expressed optimism in July that the chip crisis would ease in the second half.
At the time, he declared that Renault is firmly on the comeback trail as it carries out its turnaround plan.
Instead, lost vehicle output was around 170,000 units in the third quarter and there is “reduced visibility for the fourth quarter,” Renault said Friday.
Renault’s worldwide deliveries rose 2.6% during the first nine months of the year to about 2 million vehicles, according to figures published on the company’s website.
Sales of the electric Zoe dropped to around 47,000 during the period from more than 64,000 in 2020 as the aging model comes under pressure from rivals.
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