Chip crunch hits Renault harder than expected

Renault is taking a far harder hit from the global chip crunch than it expected.

On Friday (October 22) the French firm said production would be down almost half a million cars this year as a result.

That's more than double the cut it forecast back in September.

Renault says the shortage should ease a little by the end of the year.

But it says supplies will remain tight through much of 2022.

Shares in the firm skidded following the news, dropping 1.7% in the first moments of trade.

In the third quarter Renault saw sales fall just over 13% to $10.4 billion.

The drop in sales was partially offset by higher prices.

And Renault says there's no lack of demand, with its order book at a 15-year high.

That leaves customers facing months-long waits for some popular models.

The firm plans to complete a $2.3 billion cost-cutting plan in the coming weeks - more than a year ahead of schedule.

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