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wo of Europe’s largest automobile makers sounded the alarm on the worldwide semiconductor scarcity blighting the auto trade immediately, warning that conflict in Ukraine had made the issue worse.
French automobile maker Renault stated its order backlog hit a 15-year excessive within the first quarter as a semiconductor scarcity held up manufacturing. Volvo boss Martin Lundstedt warned of a “strained” provide chain, with conflict in Ukraine and the unfold of Covid-19 in China making present issues worse.
Renault’s first quarter income dropped 2.7% as manufacturing points weighed and the corporate estimated a manufacturing lack of 300,000 automobiles in 2022.
Sweden’s Volvo held up higher, with gross sales up 12% within the first quarter led by a 6% enhance in truck gross sales. The producer stated it had been inventory piling components, which helped it navigate shortages within the first few months of the 12 months.
CEO Martin Lundstedt warned that continued disruptions and hovering prices had been making life tough.
“The scenario within the world provide chain for semiconductors and different parts stays unstable, characterised by disruptions, unpredictability and lack of freight capability,” he stated.
“The continued unfold of covid-19 notably in China and the conflict in Ukraine are placing extra stress on the already strained provide chain and manufacturing system.”
Gross sales in China had been down 9% after rising coronavirus infections led to lockdowns in Shanghai, with many automakers pressured to briefly droop operations.
Renault’s Russian first quarter automobile gross sales had been down 15.7% in comparison with the earlier 12 months, after the corporate suspended operations at its Moscow automobile plant and mulled promoting its two-thirds stake in Russian automobile maker Avtovaz.
Russia is Renault’s second largest market with over 75,000 automobiles bought within the first quarter of 2022. The corporate introduced it was re-commencing automobile manufacturing in Russia in late-March earlier than reversing its place solely a day later.
Renault stated it might introduce extra cost-cutting programmes in a bid to remain aggressive.
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