France's Renault "Cutting 500,000 Units Production This Year Due to Semiconductor Shortage"

[Image source=Reuters Yonhap News]

[Asia Economy Reporter Hwang Yoon-joo] French automobile manufacturer Renault will reduce its production by about 500,000 units this year compared to its forecast due to the global semiconductor supply shortage.

Renault announced on the 22nd that it will cut its global production by about 500,000 units this year due to parts shortages. This is more than twice the production reduction of approximately 220,000 units that was expected earlier this month.

Renault explained that third-quarter production was about 170,000 units less than the target, attributing this to parts shortages affecting factories worldwide. In particular, Renault stated that among the parts affected by the supply shortage, the semiconductor shortage was the main factor.

Renault's third-quarter sales totaled 599,027 units, a 22.3% decrease compared to the third quarter of the previous year. Revenue during this period was recorded at 9 billion euros (approximately 12.3 trillion KRW), down 13.4%.

Nevertheless, Renault expects its full-year operating profit margin to remain at around 2.8%, similar to the first half of the year.

Clotilde Delbos, Chief Financial Officer (CFO), stated in a press release, "Despite the parts supply difficulties in the third quarter and reduced production visibility in the fourth quarter, we were able to finalize this year's forecast thanks to measures taken to reduce production costs and maximize product value."

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