LONDON (Reuters), – French carmaker Renault (PA:). The company said Friday that its 2021 production losses due to a shortage of semiconductor chips worldwide would be much greater than originally forecasted, however it maintained its profit outlook due to the high price of cars and other cost reductions.

Automakers all over the globe have had to stop or suspend production due to a shortage of chips used in brake sensors, power steering, and entertainment systems. This has caused vehicle prices to rise.

Renault is following the lead of its peer companies and focusing its production on higher-profit models.

French carmaker Renault said that its year-end production losses would be nearly 500,000 units, which is almost double what it predicted in September.

According to sources close to the company, Reuters reported this week from sources that production losses will be higher than originally forecasted.

Renault stated that the higher price of cars means that its revenue for third-quarter had declined by 13.4% despite an international sales drop of 22.3%.

It was reiterated by the company that the full-year operating profit would remain the same at 2.8% as it reported in the first half. This is compared with a loss margin below 0.8%.