Renault CEO Luca de Meo warned {that a} world scarcity in semiconductors might end in extra plant closures and dent the French carmaker’s manufacturing this 12 months.

Securing sufficient chips is “a every day battle,” de Meo stated Friday when presenting the corporate’s full-year outcomes. The semiconductor bottleneck is predicted to peak within the second quarter and will shave 100,000 vehicles off Renault’s output this 12 months, the corporate stated. Renault offered 2.95 million autos in 2020.

Renault is the most recent automaker to warn of lasting results from the supply-chain snarls which might be reverberating all through the trade, idling factories and including to wreck from the pandemic. The French firm has already idled crops in Europe and northern Africa this 12 months.

Basic Motors has predicted the scarcity will shave $1.5 billion to $2 billion off its adjusted earnings in 2021. Ford Motor Co. stated first-quarter manufacturing could possibly be cut by as much as a fifth and scale back adjusted earnings earlier than curiosity and taxes this 12 months by an estimated $1 billion to $2.5 billion.

The predictions of total harm to the sector are grim. Marketing consultant AlixPartners stated the worldwide chip scarcity might value automakers $61 billion in misplaced gross sales this 12 months. IHS Markit expects that nearly 1 million autos shall be delayed from manufacturing within the first quarter.

“It would worsen earlier than it will get higher,” Phil Amsrud, an IHS Markit analyst, stated in a report printed this week. “Long run, the automotive trade must make provide assurance as excessive a precedence as value financial savings.”