It seems that the semiconductor shortage causing serious problems in the automotive industry is here to stay, as Renault CEO, Luca de Meo revealed its effects will continue to be felt through 2022. His comments come a few days after BMW’s warning that the crisis will stay with us during the second half of 2021.
During a French parliament hearing, Luca de Meo said that Renault’s major suppliers are referring to the semiconductor shortage as “a structural thing that will be with us through 2022”, adding that it will increase tension in the system even if the production capacity improves.
The CEO admitted Renault inevitably lost production volumes during the first half of 2021 without stating exact numbers. As reported by Autonews Europe, de Meo had previously estimated that the crisis would result in a 100,000-unit lower production for Renault this year.
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The global semiconductor crisis caused by the significantly increased demand for electronic devices during the pandemic, started towards the end of 2020. It has affected all major automakers who either halted or reduced the production of several models. According to AlixPartners’s forecast published in May 2021, the semiconductor shortage may cost the industry up to $110 billion in new car sales.
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The peak of the crisis is expected to appear in this year’s second-quarter results. In the US, many popular models have seen their prices in the used car market increased over the MSRP, as automakers can’t keep up with the demand.
