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22 Apr 2022
Renault Q1 Sales Hit by Semiconductor Crunch and Ukraine-Russia Crisis
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Prominent French automaker Renault has reported lower earnings for the first quarter due to the ongoing semiconductor supply shortage and the Ukraine crisis, due to the fact that the carmaker has a substantial customer base in Russia.
According to Reuters, this dip comes as Renault’s sales retreated by over 17% to 552,000 vehicles compared to Q1 of 2021, which is the worst quarterly sales figures since 2009. On Friday, the firm revealed their earnings had dropped by 2.7% from the previous year to 9.748 billion euros ($10.6 billion).
The carmaker also added that global semiconductor supply crunch will lower its car production by 300,000 vehicles in 2022. However, their electric and hybrid vehicle sales edged higher by 13%, and made up 36% of net sales, reported Reuters.
Renault's finance chief, Thierry Piéton, said in a statement, "In a market environment severely disrupted by the conflict in Ukraine, the semiconductor crisis and inflation, Renault Group is continuing its recovery and accelerating the implementation of its strategy."
©Photo: Nytimes
