Chip crisis affects the auto industry - Economist

At the outset, we explain that the production of American factories declined significantly, contrary to expectations in September 2021, with production increasing by 0.1%, due to the decline in car production amid the continuing global shortage of semiconductors.

The Federal Reserve announced a few days ago that industrial production fell 0.7% last month, and the August data was revised lower to show production declining 0.4% instead of rising 0.2% as previously reported.

In the same context, we find that Europe is suffering from the same crisis, as the shares of the French company Renault fell by 5% in trading last week on the Paris Stock Exchange, after the car manufacturer said that production losses this year will be much greater than previous expectations due to the global shortage of chips.

The company had expected last July to decline in production by 200,000 cars, and Renault's sales in the third quarter fell by 13.4 percent to $10.4 billion, compared to $10.37 billion a year ago.

And car sales in Europe are expected to fall this year to their lowest levels in 2020 when the restrictions of the Corona pandemic reduced sales.