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.
