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Renault expects to make 300,000 fewer cars in 2022 as global chip shortage rumbles on

Renault CEO Luca de Meo said the French carmaker expects to make 300,000 fewer units in 2022 than it potentially could have as a result of the ongoing global chip shortage.

Renault made 500,000 fewer cars last year as a result of the chip shortage. In September, consulting firm AlixPartners predicted the chip shortage would cost the auto industry $210 billion in revenue.

“The situation right now is still pretty complicated,” de Meo told CNBC’s Street Signs Europe Friday.

De Meo said that Renault expects the chip crunch to become less severe this year, adding that a “normal situation” should resume in the second half of 2022.

His comments came as Renault reported an 888 million euro ($1 billion) net profit for 2021 on Friday, beating estimates. The carmaker claims its operating margin of 3.6% puts it two years ahead of its own “revolution revitalization” plan. “Renault is back on track,” de Meo said.

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