Renault sees 2021 profit despite chip crunch

French carmaker Renault expects to deliver a full-year profit for 2021.

That's despite a global shortage of semiconductor chips and rising raw material costs.

On Friday (July 30) Renault said it expects the chip drought to lead to a production loss of 200,000 units this year.

That's double its previous predictions.

But the carmaker posted a half-year net profit of 420 million dollars, versus a hefty loss for the same period in 2020.

And after posting a drop in car sales for five consecutive quarters, Renault's revenue for the first half rose 18.7%

Last month, the French firm unveiled a more ambitious strategy for electric vehicles.

It's betting on new affordable versions of its iconic small cars to catch up with Volkswagen in the fast-growing sector.

CEO Luca de Meo is a former VW executive who turned the German firm's Seat brand around.

He's been tasked with helping Renault after a troubled spell.

De Meo's plan - which he calls a "Renaulution" - includes laying off thousands of workers and cutting the carmaker's model range.

He also wants to improve cooperation on production with its alliance partners - Nissan and Mitsubishi.