Renault to extend Spanish output curbs on chip shortage

Automotive Industry

Source: Automotive News Europe, 2021-08-31

Renault will extend partial stoppages at its three assembly plants in Spain to the end of the year because of the global shortage of microchips.

The company plans to halt production at its plant in Palencia, where it builds the Kadjar SUV and Megane compact car, for as many as 61 days and at its factory in Valladolid, where it makes the Captur SUV, for up to 40 days, a spokeswoman for Renault Spain said on 31 August.

The engine plant in Valladolid could cease producing for as many as 17 days over the period.

Automakers have been forced to reduce the pace of production in recent months owing to the chip shortage, which has left them competing with the consumer electronics industry for chip deliveries amid global supply disruptions because of the coronavirus crisis.

Renault had already approved a plan to idle the factories in Spain for up to about 30 days each between April and July and decided to set up a new plan for the last four months of the year as the shortage continues. Renault usually has capacity to build about 580,000 cars a year in Spain.

The automaker’s decision to slow output follows similar moves by rivals including Volkswagen, Toyota and Stellantis.

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