Renault Shows Financial Resilience As Industry Negatives Mount

Despite the future of its Russian subsidiary and alliance with Nissan remaining in jeopardy, the first big European manufacturer to report 800-381-0266 800-381-0266 800-381-0266 800-381-0266 800-381-0266 800-381-0266 800-381-0266 800-381-0266 800-381-0266 800-381-0266 800-381-0266 800-381-0266 800-381-0266 800-381-0266 800-381-0266 800-381-0266 800-381-0266 800-381-0266 800-381-0266 800-381-0266 800-381-0266 800-381-0266 800-381-0266 800-381-0266 800-381-0266 800-381-0266 800-381-0266 800-381-0266 800-381-0266 800-381-0266 800-381-0266 800-381-0266 800-381-0266 800-381-0266 800-381-0266 800-381-0266

The company reassured investors in March that the operating profit margin would be around 3%, and its shares jumped more than 2% Friday. After the Russian invasion of Ukraine in February, the shares of the French company dived more than 40%, but have recovered about a third of that. On Friday, the STOXX Euro 600 Auto shares index fell 1.5%, making the move by Renault more impressive.

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In the first quarter, sales of its own brand, Dacia, and Lada, decreased by 2.7%. Excluding AvtoVAZ and Renault Russia, sales fell 1.1%.

French companies only report sales after 3 and 9 months.

The performance of the company was reassuring with revenues almost flat with price strength offsetting volume loss. The impact on the rising price of raw materials this year has ballooned three times over last year, compared with an earlier expectation of two times.

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The report showed that the company would be able to improve profit margins.

Frank Schwope was not as sanguine.

nault needs positive news, such as working more closely with another group or joining forces with a new partner, as the alliance with Nissan is not going well and the progress of the AvtoVAZ/Lada stake is unclear Schwope said that most manufacturers benefit from the shortage economy, where price effects beat volume effects, and they make high profits despite low sales.

So far, no details have been provided about the planned withdrawal from Russia. Talks on the future of these assets were making progress on Friday.

According to a report published by automotive News Europe, the French company is considering either selling part of its stake in Nissan back to the Japanese company or looking for an outside buyer. The report said this might involve China's Zhejiang Geely Holding, which owns Volvo Cars.

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If the Renault/Nissan alliance finally breathes its last, Mercedes and Stellantis could be potential partners. The global automotive business is in turmoil due to the after-effects of the coronaviruses epidemic, the supply-chain crisis, and the Russian invasion of Ukraine, and investors say that a partner is needed to stay competitive.

When Nissan emerged from bankruptcy in 1999, the 43% stake in the company was taken over by Renault. Nissan has a stake in the company. France has a 15% stake in the company. Some commentators have said that the power balance should be smooth by Nissan buying part of the stake from Renault. This would help restore Nissan's power and raise money, but requires the approval of the French government.

Luca De Meo launched a recovery program last year that will see the launch of 24 new vehicles and more electric cars. The money from the Nissan stake sale could be used to fund the plan to spin off electric car assets. The diesel and gasoline assets would be bundled together by Nissan.

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In Russia, the operating profit margin of the company was around 12%. A Russian government-owned corporation headed by Sergey Chemezov has a controlling interest in AvtoVAZ. In the year 2021, the company sold over 500,000 vehicles there, including 358,000 Ladas and 135,000 branded cars.

According to analysts, the weakest of Europe's mass car manufacturers is not only because it turned down the chance of an alliance with theFCA, but also because it looks to be. Groupe PSA merged with FCA.

Sales are sacrificed in favor of profits in the long-term plan. It will cut output to about 3.1 million vehicles by the year 2025.

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Carlos Ghosn, the former alliance leader, wanted a full merger of Nissan and Renault to appease Japanese concerns that France had an unfair share of the power in the alliance. His arrest and escape from Japan ended the plan.

Upcoming first-quarter results include Mercedes and VW.