MADRID (Reuters), Luca de Meo was recently elected CEO at French carmaker, Renault. Renault Spanish newspaper Expansion reports that a shortage of semiconductors is expected to increase car prices.

In an interview with the newspaper, he stated that prices would rise more over the next 12 months because chip manufacturers are taking advantage the lack of leverage.

De Meo stated to Expansion that car prices are rising because manufacturers choose more costly models due the shortage of chips.

He noted that rising steel, gas and energy costs are also contributing to the rise in car prices.

He said that it would take over ten years to build European competitive chip manufacturing capabilities.