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00:00Let me just first ask you about the combustion engine. Gasoline engines. Are they for you also going to no longer be produced in the next 10 years. Well obviously the manufacturing of I see ours will fade away during that period but it will not totally disappear. Of course you have to understand that some regions of the world will be really electrified. And that is not going to be the case of Europe. But the rest of the world will still have to rely on some sort of production of the sort of AC power. Yes. Yes. Clearly we are moving in the direction of electric vision. But the way we announced that we know would be in Europe 100 percent evey pure Eevee in 2030. So on that part there is no question then you understood that Nissan would also announce that 100 percent of that production would be electrified in 2030 which means there will be Eevee and HCV and and also Mitsubishi parts of the airlines announced that they will have a major shift towards electrification. What that means is that we are now having a very solid strong strategy toward electric station investing a tremendous amount of money as you said more than 26 billion dollars in the coming years. We already invested more than 10 billion dollars probably 12 million dollars in the past 10 years which means that we have all in all a tremendous amount of resources that has been optimized between our three companies. And so this amount is very significant and it reassures us that we will be on time with the right production to serve the markets where it's needed. And I can tell you we are now very optimistic. And this is what we shared with the public this morning. Well it's a longer term overview in terms of the market right now. We've heard some pretty disturbing figures for production. I think German car production is at a 21 year low. The U.K. had its worst year since 1956 of course. All this has to do with the supply chain problems and the shortage in ships. How are you feeling that shortage right now. And what is 2020 to look like to you in terms of ship delivery. Well we asked we suffered all of them all of us in the automotive industry. So you know the figures. I don't need to come back on that. It's been really an ordeal and a real crisis to go through. Listen I am probably a bit more optimistic towards the end of this year. We have to be careful because we will live in a very very chaotic world. And uncertainty is the rule of the day. But the first half may be still a bit difficult and we will certainly have some crisis to manage all of this. I have to say but I'm honestly a bit more optimistic for the second half at least. At some point capacities will reach ground and that we will be able to supply our factories. So all in all I mean we are very cautious for the year with a probably more optimistic view of the second half. OK. More optimistic in the second half. Good morning to you. And what about your pricing environment and your ability to pass on higher prices which no doubt you are experiencing to consumers. Are you concerned that we can is facing inflation in many directions. That's going to be something that weighs on the sector. Well yes we have to we have to face reality. I mean clearly notably when we speak about electrification we all understand that the cost of these cars is higher than the I see technology. It's a fact of life. So in some regions I mean we are helped by a state subsidies for fall for the consumer to pay their cause at a more affordable price. But in a sense the groups like Hood nor Nissan and Mitsubishi have no other choice but to increase the prices to make sure that there. I would say that competitiveness and profitability remains at the right level. We are by the way improving dramatically in that direction. So far so good. I would say we will do everything we can to avoid that. The consumer suffers too much. It's really the point here. But in a sense we have to absorb the dramatic increase in raw material prices that we experienced in the past weeks. That's just facts of life. We would do our best to be more and more competitive so that we can keep the prices under pressure so that we can be affordable. But B be sure that not only we will have to make our duty in terms of competitiveness but we will take care about the customers. That's obviously the most difficult part of the year to come. Jean-Dominique we continue to monitor the supply chain challenges. We're also continuing to monitor geopolitical challenges. And when we think about the tensions at the border of Russia and Ukraine potential sanctions that could result. How do you see that potentially impacting sales in Russia. And your investment plans there. Well so far there is no impact of this. This crisis now. I mean honestly I have to be cautious about the coming weeks because none of us really know the outcome of this this crisis as we speak. There are some consequences on the Russian currency as you know. But at the same time the price of oil is increasing the price of gas is increasing which increases the revenues in Russia. So all in all it's a bit early to have a perfect view at a perfect balanced view of the impact in the country as we speak. We don't see any major impact of this the early days. We are monitoring the situation very closely. But I don't think that because of the nature of the products that we are bringing to the Russian market that we should suffer too much because honestly we are producing now notably through the latter. John Dominic Wood exactly what exactly what the Russian customers need. Would you stop doing business with Russia if they invaded Ukraine. Now the question is not that we have a huge we have a huge investment in Russia. I mean we have more than 40000 people working for the group there. I mean we are we are totally conscious of the situation. But but we have to take care about these people. So so we are we are producing internally in Russia. And it is clearly we will remain in that situation. I mean we will monitor the global crisis. But as a company we have to make sure that we take care about the people who work for us.

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Renault Chairman Optimistic on Chips in Second Half

Renault Chairman Jean-Dominique Senard discusses the combined $26 billion electrification plan with Nissan Motor Co., his outlook on the semiconductor shortage, and the company’s business in Russia. He speaks on “Bloomberg Surveillance Early Edition.” (Source: Bloomberg)

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