Auto focus

Renault CEO warns of bigger price jump ahead as costs soar, Expansion reports

Reuters MADRID | Updated on October 07, 2021

Shortage of semiconductors and other rising costs cited as reasons for price hike

Luca de Meo, the recently appointed CEO of French carmaker Renault, said a shortage in semiconductors and other rising costs are set to boost car prices, Spanish newspaper Expansion reported on Thursday.

“Prices will rise even more in the coming 12 months,” he told the newspaper in an interview, as chip makers are taking advantage of the leverage scarcity is giving them.

Car prices are already rising as carmakers focus on more expensive models due to the lack of chips, de Meo told Expansion.

Also read: Renault-Nissan ordered to pay additional wages, despite warning India unit could become ‘unviable’

Also boosting car prices are the rising costs of steel, gas,energy, copper and aluminium, he noted.

Building competitive chip manufacturing capacities in Europe would take more than 10 years, he said.

Published on October 07, 2021

Follow us on Telegram, Facebook, Twitter, Instagram, YouTube and Linkedin. You can also download our Android App or IOS App.

  1. Comments will be moderated by The Hindu Business Line editorial team.
  2. Comments that are abusive, personal, incendiary or irrelevant cannot be published.
  3. Please write complete sentences. Do not type comments in all capital letters, or in all lower case letters, or using abbreviated text. (example: u cannot substitute for you, d is not 'the', n is not 'and').
  4. We may remove hyperlinks within comments.
  5. Please use a genuine email ID and provide your name, to avoid rejection.

You May Also Like