Renault CEO warns of bigger price jump ahead as costs soar, Expansion reports By Reuters

© Reuters. FILE PHOTO: Renault Group CEO Luca de Meo speaks during a world premiere of Megane E-Tech car ahead of the Munich Motor Show IAA Mobility 2021 in Munich, Germany, September 6, 2021. REUTERS/Michaela Rehle

MADRID (Reuters) – Luca de Meo, the recently appointed CEO of French carmaker Renault (PA:), said a shortage in semiconductors and other rising costs are set to boost car prices, Spanish newspaper Expansion reported on Thursday.

“Prices will rise even more in the coming 12 months,” he told the newspaper in an interview, as chip makers are taking advantage of the leverage scarcity is giving them.

Car prices are already rising as carmakers focus on more expensive models due to the lack of chips, de Meo told Expansion.

Also boosting car prices are the rising costs of steel, gas, energy, and aluminium, he noted.

Building competitive chip manufacturing capacities in Europe would take more than 10 years, he said.

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