Luca de Meo, CEO of Renault Motors of France, recently stated that the global semiconductor shortage will continue until 2022. This does not bode well for the recovery of the auto industry.

According to Bloomberg News, Luca de Meo said that Renault has been informed by its main suppliers that the semiconductor shortage is actually a structural problem and will continue until 2022. Even if foundries increase production capacity, supply will still be tight.

This also shows that the supply shortage that many automakers expect to peak in the second quarter may have a longer-term impact on auto production.

Daimler and Jaguar Land Rover said this week that car sales will be further restricted due to chip supply shortages. Mercedes-Benz said on Tuesday that due to the lack of chips, deliveries in the second quarter were significantly reduced. Renault also stated that vehicle deliveries in the second quarter will be 50% lower than initially expected, and annual production is expected to decrease by at least 100,000 vehicles. In addition, BMW said on Wednesday that it may further adjust its production plan this year.

Luca de Meo said, “We were successful in the first half of the year, but sales declined. To the frustration of the entire industry, the visibility of supply changes every week.”

Consulting firm AlixPartners predicted in May that a global shortage of chips could reduce sales in the automotive industry by $110 billion and force automakers to completely change their access to electronic components.