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Renault warns of scarcity of semiconductors among construction companies

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Several segments of the technology and automobile industry have been facing a serious crisis and scarcity of semiconductors, necessary for the production of any electronic component, namely, integrated circuits or small controllers, used in practically everything, from automobiles to computer components.

This crisis does not have a single explanation, as the occurrences of several events have hindered the management and commercialization of semiconductor metals – the most damaged ones have been the automobile brands – that operate with very restricted margins, where any fluctuation in price and stored quantities, it takes on very broad proportions.

Jaguar Land Rover, for example, has already taken precautions with regard to this problem, having ended up closing two production units in the United Kingdom. In Portugal, Bosch – a manufacturer of automotive components -, which has a production unit in Braga, announced that, in view of the global scarcity of semiconductors, it would put its workers on lay-off from May 10 to June 9 in order to achieve stabilize fluctuations and replenish the semiconductor stock, which is one of the main suppliers in the automotive and home appliance and electronic products sectors in the world.

Renault warns of scarcity of semiconductors among construction companies

The reasons behind this scarcity are several, but stand out, a fire in one of the main microchip factories in Japan – Renesas Electronics – which ended up affecting and compromising the manufacture of automobiles, in addition, the harsh winter in the State of Texas in the USA, the problems with the reduction of the extraction of a large part of these semiconductor metals increased. Incredibly, when something has to happen, it happens in the worst case scenario, a pandemic arises that drags the whole world into harsh confinement.

This confinement has led to an imbalance between demand and supply in several world markets, prompting producers to quickly shift the focus of supply to other segments. The presence at home, led to an increase in the demand for notebooks and mobile phones, which meant that, in view of the quantities available, it represented a decrease in semiconductors for the automotive industry (which sold less) and for other sectors, such as graphics cards. (such as parts for fixed PC).

1621427830 528 Renault warns of scarcity of semiconductors among construction companies

Advertisements appear around the world, Honda despite having announced an operating profit of € 1.5 billion (US $ 1.9 billion) for the fourth fiscal quarter, having lost about 100,000 production vehicles due to the global shortage of semiconductors. According to what was announced, between April and September, continuous losses are expected, ending up only in the best fiscal third quarter in Japan.

The Renault manufacturer chose not to point out any forecasts about production in this new year – in a clear reference to the commitment to investors, given the uncertainty of the market in the near future – with Clotilde Delbos, financial director of the Renault Group, informing: “[…] We will not want to give any estimates that may be incorrect very quickly. ”

1621427831 423 Renault warns of scarcity of semiconductors among construction companies

The rhombus brand strategy focuses on the manufacture of its most profitable models – since they are less susceptible to price variations -, in an attempt to remedy possible losses in production. Renault’s overall sales fell 1.1% to € 8 billion ($ 10 billion), with losses in the production of “tens of thousands” of cars.

According to the Executive Vice President, the Group did not expect a peak of low supply in the first quarter, however, the fact is that this happened, even more so, at a time when vaccination is advancing and after a record year of savings , consumers will have an almost undeniable tendency to demand (again) for what can provide them with harmony and satisfaction – for some, the car fills that spectrum.

1621427831 223 Renault warns of scarcity of semiconductors among construction companies

News emerges that some companies have not felt a significant impact, as is the case of Hyundai, which reaffirms that the scarcity of semiconductors did not have a major impact on the production of the South Korean manufacturer, guaranteeing sufficient volumes for the coming months – this in a highly exporting country. of semiconductors.

The BMW Bavarians also did not feel a direct impact on their production, however, the Mini that is part of the same group saw some of its production lines suspended as a way to deal with the shortage that prevents the manufacture of “modern vehicles”, highly dependent on complex integrated circuits. On the other side of the barricade, Daimler announced that the cut in working hours to more than 18,500 employees, in Germany alone, given the decrease in production.

1621427832 23 Renault warns of scarcity of semiconductors among construction companies

The Boulogne-Billancourt maker is in the midst of a € 2.45 billion ($ 3 billion) restructuring plan under Chief Executive Luca de Meo, after a € 8 billion loss in 2020. The price increase policy carried out by Renault has made up for part of the losses – with more profitable models of segment B and C – however, the “Renaulution”, the brand’s innovative plan intends to invest more in higher and more profitable segments, the segment C (tendency).

This plan involves cutting production capacity by about a quarter and eliminating 15,000 jobs, as well as reforming its brands. In addition, Renault recently announced the sale of its 1.5 percent stake in Daimler for around € 1.2 billion last March.

Source Financial Times

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