Renault CEO Luca de Meo stated the French carmaker expects to make 300,000 fewer items in 2022 than it probably may have on account of the continuing global chip shortage.

Renault made 500,000 fewer automobiles final 12 months on account of the chip scarcity. In September, consulting agency AlixPartners predicted the chip scarcity would value the auto business $210 billion in income.

“The scenario proper now continues to be fairly difficult,” de Meo advised CNBC’s Avenue Indicators Europe Friday.

De Meo stated that Renault expects the chip crunch to develop into much less extreme this 12 months, including {that a} “regular scenario” ought to resume within the second half of 2022.

His feedback got here as Renault reported an 888 million euro ($1 billion) web revenue for 2021 on Friday, beating estimates. The carmaker claims its working margin of three.6% places it two years forward of its personal “revolution revitalization” plan. “Renault is again on monitor,” de Meo stated.