Renault CEO Luca de Meo mentioned the French carmaker expects to make 300,000 fewer items in 2022 than it probably might have because of the continued international chip scarcity.

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

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

De Meo mentioned that Renault expects the chip crunch to grow to be 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) internet 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 mentioned.