Renault Relatively Confident For 2022 Despite Some Chip Supply Worries

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Renault is “relatively confident” about its business year but still sees some problems over chips supplies which it expects to be felt mostly in the first half of 2022, the French carmaker’s Chief Executive Officer said on Thursday.
“We are relatively confident for 2022 but we know that it’s a volatile and uncertain world,” CEO Luca de Meo told journalists at a company event, adding that the carmaker’s restructuring efforts were running ahead of their schedule.
Shares in Renault edged up after the publication of the comments midday on Wednesday and traded 3.9 % higher at 1231 GMT, topping France’s bluechip CAC40 index which was down 0.55%.
Renault’s finance chief at the same event said that the carmaker was hoping to pay back as soon as possible the remainder of a 3 billion euros ($3.44 billion) loan backed by the French state, Renault’s biggest shareholder.
The company also said it would step up the ambitions to shift its core Renault brand towards e-mobility, targeting to produce a “100 % electric” fleet by 2030, from 90% previously announced.
Questions & Answers
Q.What is Renault's primary concern for its business year?
What is Renault's primary concern for its business year?
Renault is concerned about chip supply problems, which it anticipates will primarily affect the first half of 2022. Despite this, the company expresses relative confidence for the overall year ahead.
Q.What are Renault's plans for its core brand's future vehicle production?
What are Renault's plans for its core brand's future vehicle production?
Renault aims to transition its core brand towards e-mobility, with a target of producing a 100% electric fleet by 2030. This represents an increased ambition from its previously announced 90% target.
Q.What is Renault's intention regarding its outstanding state-backed loan?
What is Renault's intention regarding its outstanding state-backed loan?
Renault hopes to repay the remaining portion of its 3 billion euros state-backed loan as quickly as possible. The French state is currently the carmaker's largest shareholder.
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