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The Shortage of Chips to Continue Until Mid-2022
Dec 1, 2021 17:50CST
Renault expects that the semiconductor supply problem will continue until at least the middle of 2022, which will make the company's turnaround plan more complicated.

SHANGHAI, Dec 1 (SMM) -Renault expects that the semiconductor supply problem will continue until at least the middle of 2022, which will make the company's turnaround plan more complicated.

Renault CEO Luca de Meo said that the company is prioritising the production of more profitable cars and commercial vehicles amid strong demand. The company even sends people to Asia to get chips. The Flynn plant mainly produces electric hatchback Zoe and Nissan Micra. After nearly 70 years of operation, the plant may suspend production in the future. The Flynn plant will be transformed by 2024 to recycle and refurbish cars and batteries. Until then, the plant will continue to produce Zoe.

The transformation of the Flynn plant is a key part of Renault's wider turnaround plan. Its plan also includes layoffs, cost cuts, and reductions in global automotive production capacity.

 The company will integrate the production of electric vehicles at the Douai plant in France, and the Megane electric vehicle will be produced at the Douai plant. Renault will also produce Dacia Spring models in China.

The output at this company is expected to decline about 500,000 units due to the shortage of parts, which is nearly one-fifth of last year’s production.

Renault

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