Renault expects to make 300,000 fewer cars in 2022 due to global chip shortage

Feb. 18 (UPI) -- French automarker Renault is looking at a production shortage of about 300,000 vehicles this year due to the global shortage in semiconductor chips, the company's chief executive said Friday.

Like virtually all automakers, Renault has been impacted by the global shortage, which is linked to disruptions and regulations brought on by the COVID-19 pandemic.

Last year, Renault produced 500,000 fewer vehicles due to the supply shortage and analysts have predicted that it could ultimately cost the auto industry more than $200 billion in revenue.

"The situation right now is still pretty complicated," Renault CEO Luca de Meo told CNBC Friday.

De Meo said he's hopeful that the global shortage will improve this year and allow the industry to return to a more "normal situation" over the second half of 2022.

Also Friday, Renault reported a $1 billion net profit in 2021, the second straight year it's posted an overall profit. About a third of the vehicles it sold in Europe last year were hybrid-powered.

De Meo said that Renault's plant in Russia could also run into supply chain issues because of the ongoing crisis with Ukraine.

Despite the shortage, a report earlier this week said that global sales of semiconductor chips across all industries in 2021 grew to a record $556 billion.