LONDON, Oct. 22 (Reuters) – French automaker Renault (RENA.PA) said on Friday that its production losses in 2021 due to a global shortage of semiconductor chips would be much larger than expected, but maintained its profit prospects thanks to high car prices and cost reductions.
The shortage of chips, used in everything from brake sensors and power steering to entertainment systems, has led automakers around the world to cut or even halt production, driving up vehicle prices.
Like its peers, Renault has concentrated its production on more profitable models.
The French automaker said its production losses for the year would now be close to 500,000 vehicles, more than double the 220,000 units expected in early September.
Sources close to the company told Reuters this week that production losses would be much higher than expected. Read more
The automaker said that at the end of September, its order book had peaked in 15 years, equivalent to 2.8 months of sales.
In the third quarter, fully electric, plug-in hybrid and hybrid models accounted for more than 31% of sales, Renault said.
The automaker is on track to meet more stringent European CO2 emissions targets in 2021, he added.
Renault said the rise in car prices meant that despite a 22.3% drop in global sales, third-quarter revenue fell 13.4% to € 8.98 billion (10, $ 4 billion) compared to $ 10.37 billion a year earlier.
The company reiterated that its operating margin for the full year would be about the same as the 2.8% it announced for the first half of the year. This compared to a loss margin of minus 0.8%.
Renault said vehicle inventories fell to 340,000 cars at the end of the quarter, from 470,000 a year earlier.
($ 1 = 0.8601 euros)
Reporting by Nick Carey; Editing by Subhranshu Sahu and Clarence Fernandez
Our Standards: The Thomson Reuters Trust Principles.