[Auto Moto] Renault expects the auto industry crisis to continue in 2022

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Renault CEO Luca de Meo believes that the semiconductor crisis and the shortage of chips will last until 2022 and will continue to affect the automotive world.

The Renault CEO's comments came a few days after BMW warned that the semiconductor crisis would continue until the second half of this year.

And the CEO of Renault revealed that the major suppliers of Renault confirm that it still has a lot to return to normal and that the shortage will continue until next year.

Renault suffers from a weak production volume during the first half of this year due to this crisis, which is evident from the decline in the production rates of cars in Renault by about 100,000 cars during this year.

The semiconductor crisis emerged at the end of 2020, due to the increasing demand for electronic and medical devices to counter the spread of the Corona pandemic.

All car companies suffered from this crisis, which prompted some of them to reduce or stop production completely in some cases.

Experts expect the auto industry as a whole to be affected by up to $110 billion in losses in new car sales.

Ford F-150 is back in production

Ford is back to resume production of the F-150 pickup truck with a promise to ship production models to dealerships in the near future.

Ford's return to continue production of the F-150 pickup model came after a period of the American company's suffering from a shortage of semiconductor chips, which forced production lines to stop for a period.

 

Ford received a new shipment of semiconductor chips, which allowed the company to continue production of the F-150 pickup, which is po[CENSORED]r in the off-road and pickup segment.

Ford revealed that it would focus on ending production of cars that were assembled but were waiting to install semiconductor chips.

Ford has not announced the number of cars for the F-150 that will appear soon after installing the semiconductor in it, but the American company confirms that it has put cars that lack semiconductor chips as a priority in production.

Ford struggles in F-150 production
The American company Ford admitted that it is suffering in its production of cars due to the lack of electronic units, which greatly affects the F-150 and others.

 

The company revealed that it will produce the Ford F-150 in North America without parts due to a severe global shortage of semiconductors.

Ford confirmed that the world is currently suffering from a severe shortage of semiconductors, with a shortage of spare parts due to the winter storm that ravaged the central United States of America last February.

Ford explained that the company will produce Ford F-150 vehicles and keep them for several weeks before shipping them to dealers, when it is sure of the availability of the missing units and the completion of quality checks on them.

It is worth noting that Ford faces a great risk if the global shortage of semiconductors continues this year, which will affect the company's profits, which have not yet exceeded its losses in 2020 due to the repercussions of the Corona virus.

The chip crisis hits BMW

The shortage of semiconductors, or what is known as electronic chips, continues to plague the landscape of modern industries, especially the automobile industry.

 

And every day, new dimensions of the crisis appear, which comes in light of production obstacles that have occurred since last year due to the outbreak of the global Corona pandemic.

BMW on crisis streak
The German company BMW announced its expectations that the shortage of semiconductors or electronic chips will continue until the second half of this year, which means that the problem will worsen and the lack of a solution to car supply issues.

"Semiconductor supply is critical, and the outlook for the second half of the year remains critical due to continued supply shortages," said BMW production chief Milan Nedelijkovic.

 

"It is difficult to assume that the crisis will be brought under control soon and the shortage will be covered to some extent in the first half of the year," added Nedelijkovic.

The speech of the head of production at BMW came during the press conference organized by the company on the sidelines of the launch of its new BMW Ix.

 

Stopped 30,000 BMW cars
The head of production at the Bavarian giant Nedelijkovic stated that BMW's share of the production deficit amounted to about 30,000 cars until the end of the second fiscal quarter of this year 2021.

His expectations were not optimistic for the remaining months of the year, as he stressed that the decrease in productivity is likely in the second half of the year as well.

 

Changes affecting the global market
During the first and second quarters of this year, the car market witnessed a significant increase in sales, in the wake of many governments easing the restrictions and precautionary measures related to combating the outbreak of the global Corona pandemic.

However, it is worth noting that the high demand in the car market was not matched by an increase in supply, which led to the emergence of crises in productivity and supply, especially with the exhaustion of modern cars at distributors.

In the American market, according to press reports, car dealers and distributors reported that customers are accepting to buy new cars without negotiation.

They pointed out that cars in high demand and lightly used cars are now selling in more numbers than they did when they were offered new.

 

The impoverishment of new cars is one solution
With the growing crisis of chips and semiconductors, stakeholders in the automotive industry are trying to come up with solutions that support their profits while at the same time providing what customers demand from the settings in each car.

However, achieving gains for both parties, the seller and the buyer, is not an easy matter, as providing a technically advanced car has become a difficult matter, especially taking into account the stability on the same prices.

 

In an attempt to confront the problem, a number of car manufacturers resorted to providing vehicles devoid of well-known settings and features, in order to end their production in light of the lack of parts required to complete the process of launching them in the market.

Without a steady supply of microchips, which are imperatively needed in every high-tech manufacturing, and a backlog of business, decisions will soon become more difficult for automakers.

 

Luxury cars are affected by the lack of chips
International press reports revealed that the British giant Land Rover will stop the production of some luxury models from the company's factories due to the shortage of semiconductor microchips.

Reports confirmed that Land Rover is in the process of temporarily stopping the manufacture of some famous luxury cars, most notably the Defender and Discovery models.

She explained that the shortage of semiconductor microchips caused disruption of production lines at the company's factories in Nitra, Slovakia.

And the number of copies that will be postponed during the coming period in the factories of Land Rover to about 150 thousand cars.

Reports confirmed that after a temporary suspension of the manufacture of some luxury cars, Land Rover will be facing a huge loss of 110 billion US dollars during the current year 2021.