The scarcity of chips constrains the manufacturer to less produce. Sales dropped by 22% in the third quarter.
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The dropout is spectacular. Renault announced that the semiconductor shortage will result in a loss of production of about 500,000 vehicles in 2021, when presenting its third quarter sales, Friday, October 22. So far, the French manufacturer had anticipated this loss to 220,000 vehicles, expecting to be able to amortize the scarcity in the second part of the year.
But the chip crisis has accelerated instead of slowing down. On the third quarter, the group in the diamond estimates to have lost 170,000 units because of the lack of components. In total, between July 1 and September 30, vehicle sales dropped by 22%, at less than 600,000 vehicles, a historically low number for this part of the year, at Compare with the 860,000 vehicles sold in the summer of 2019, before the hurricane of COVID-19 breath.
Range in range
However, in this storm, Renault clings, showing a decline in turnover almost twice less lower than that of its sales, ie – 14%, to 9 billion euros. This result, the company’s management attributes it to its new climbing strategy of its models and, starting, rising the average price of its vehicles. The Renault brand is thus well on the most profitable models and channels: utilities (+ 1.4%), the range of electric vehicles e-tech (electric and hybrid). The e-tech line now accounts for a third of the tenders, in particular thanks to the success of the Renault Arkana (produced in Korea for the European market).
Paradoxically, the semiconductor crisis helps Renault to accelerate this change in the culture of business of the former governance, which is at the heart of the “Renaution” put in place by the general manager of the group, Luca MEO. “With the shortage, discounts and discounts have completely disappeared and all the builders allocate the components to the most profitable vehicles,” says Alexandre Marian, Director France of the Consulting Cabinet Alixpartners. The margin per vehicle had increased by 1,400 euros on average in 2020 compared to 2019. The movement was extended this year. “
In what turns out to be a supply crisis rather than a crisis of demand – order notebooks are full, according to a trade union source – Renault manages to maintain its financial objectives. The Financial Director of the Renault Group, Clotilde Delbos, confirmed, on Friday, October 22, before a panel of financial analysts, that the group continues to target a margin of + 2.8% and a positive cash flow for 2021. Certainly not yet flamboyant, but it is to compare with the loss of 8 billion euros of 2020 and the negative margin of – 0.8%. In addition, the dividend of 930 million euros that RCI, the financial subsidiary of Renault will pay this year to its parent company should also help to spend the year.
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