Renault sales are affected by the global chip shortage
Renault sales for the first quarter were affected by a lack of global arms and currency fluctuations as a French car manufacturer struggled to cope with lower prices by raising its lucrative brands.
Prices fell 1.1% to € 10bn as the company said its plans to raise prices reduced the decline caused by the coronavirus epidemic. The group is prioritizing its lucrative vehicles in major markets beyond Europe, such as the Kiger SUV in India and Dacia Duster in Russia.
Without currency exchanges, sales would have shrunk by 4.4%, Renault said Thursday.
The group warned of “rising storms” such as foreign exchange prices and equipment prices and “low visibility” due to a lack of electricity.
Simultaneous sales last year – a quarter when companies were forced to close their crops when the European crisis came into effect – fell to € 10.1bn from € 12.5bn in the first quarter of 2019.
The French car manufacturer is among the € 3bn plans overseen by Luca de Meo chief executive, following 8bn losses by 2020.
The plan includes cutting back on factory power quarters and reducing jobs by 15,000, as well as improvements that include Lada and Alpine. Renault has announced sales of its 1.5% stake in Daimler for around € 1.2bn last month.