MADRID — Renault has began negotiations with unions to increase the partial idling of three of its 4 factories in Spain till the tip of September as a preemptive measure in case a worldwide semiconductor scarcity lingers.

Automakers all over the world have been impacted by the scarcity of chips utilized in engine administration and driver-assistance methods, which come primarily from Asia, particularly Taiwan.

Renault had already partly idled its Spanish crops in response to the scarcity, on the expectation that chip provide would return to regular within the second half of the 12 months.

It’s now proposing additional stoppages at factories in Palencia and Valladolid for a complete of between 31 and 39 days, an organization spokesman mentioned on Tuesday, as a precautionary measure in case the scarcity extends into the third quarter.

That may contain placing as much as 9,000 employees on furlough, he mentioned. The precise idling will depend upon future chip provides.

The UGT union mentioned in an announcement that Renault meant to stop output on the factories at its key European manufacturing hub for one to 3 days every week between April and late September.

The COVID-19 disaster has pushed up demand for chips utilized in shopper electronics akin to laptops and telephones, and producers are struggling to maintain up.

Some Chinese language suppliers have additionally been hit by U.S. sanctions imposed beneath former President Donald Trump.

Renault is because of disclose first-quarter revenues subsequent week and will replace its gross sales projections. The corporate at this level expects it might promote 100,000 fewer automobiles in 2021 due to the chip scarcity, a spokesman reiterated on Tuesday.

The group mentioned final month it could begin producing 5 new hybrid SUV fashions in its “second dwelling” Spain between 2022 and 2024.