Renault cuts production

Renault cuts production


The microchip shortage faced by automakers amid the pandemic has reached Renault. According to the Czech newspaper, the company will have to adjust the work schedule of its European factories, reducing the work week to one to three days. And this is not a short-term measure: it is expected that the pace of production will recover only by the end of September.

Top managers of Renault are already negotiating with local trade unions to reduce working hours. We are talking about the Spanish factories of the brand in Valladolid and Palencia: the Renault Captur crossover rolls off the assembly line of the first, and the assembly of the Kadjar and Megane crossovers is established at the second. It is assumed that the enterprises will work from one to three days a week, which will affect about nine thousand employees.

In Renault, the decision is called a preventive measure in connection with the expected shortage of microchips, which a number of large auto brands have already faced: Audi, Toyota, Nissan, Ford, Honda, Daimler, FCA concern, Subaru and Volkswagen. According to Renault’s forecasts, the problem with the shortage of components will not be resolved until the second half of the year, as a result of which the brand will sell 100 thousand cars less than planned this year.

The shortage of chips is associated with an unexpectedly rapid recovery of the automotive industry after last year’s lockdowns, which is why electronics manufacturers simply do not have time to cover the sharply increased demand. According to the forecast of the American analytical agency IHS Markit, car factories around the world will have to postpone the release of about a million cars – this is five percent of total production.

We also advise you to watch a detailed review of Renault Koleos from the FineAuto team:

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