Automotive: for the CEO of Renault, prices will increase

After having experienced a complicated year 2020 due to the Covid-19 pandemic, and in particular the closure of factories and dealers, the year 2021 is marked by a shortage of components: but the automotive sector should pick up color as it goes. that the situation stabilizes. Potential buyers, on the other hand, might have some nasty surprises when it comes to paying for their purchase.

A combination of circumstances unfavorable to buyers

Invited to Europe 1, Renault CEO Jean-Dominique Senard remains confident for the future of the French manufacturer: “ Renault is doing better and is bouncing back “, did he declare. But recovering from the annus horribilis that 2020 was and what the next few years will be takes time.

Especially when a combination of circumstances does not do the business of manufacturers: semiconductor shortages and rising raw materials. If the CEO of Renault judges that manufacturers will be able to ” make up part of the delay from the first semester to the second », The trend will be to increase prices. “ You shouldn’t hide behind your little finger. The inflationary aspect is real and we see it everywhere. Suppliers are already feeling it and at the end of the chain, we will feel it.

Inflation at all links in the chain… right down to the consumer

Inflation is the major worry of economists in this period of exit from the crisis: if controlled it is beneficial for the economy, the ECB still setting its target of price increases at a level close to but less than 2% per year, too large it can be harmful. However, on the side of industrial production (such as the automotive sector), it is likely to be high.

Raw materials are rising sharply in the markets, driven by demand itself on the rise … while shortages of components, such as semiconductors, are straining the market. Jean-Dominique Senard therefore wishes to warn future Renault customers: “ It is obvious that our businesses are going to have to do what it takes to survive, and therefore necessarily pass part of its price increases to the public “.

The French could therefore have to pay more for their new car than in 2019, but that should not slow down purchases: the billions of euros saved during the Covid-19 crisis, between 100 and 200 billion according to estimates, will be used. to finance this upcoming increase.