The carmaker Renault benefited greatly from price increases in the third quarter and significantly increased its sales. Overall, revenue from July to September reached EUR 9.8 billion. Nearly 13 percentage points of the growth came from price increases — the company’s biggest increase ever, it said. Without the former Russian unit Avtovaz, sales increased by 20.5 percent across the group, as Renault announced on Friday. From the previous year’s figures, the discontinued operation is in Russia already calculated.
Because of the war in Ukraine and the Western sanctions imposed on Russia, Renault had sold its majority stake in the Russian manufacturer Lada to a Russian research institute for a symbolic sum. According to earlier information, Renault had written off a total of around 2.2 billion euros on the Russian business.
Renault sold 481,000 vehicles in the three months, 2.4 percent fewer than a year ago. However, the situation surrounding the supply of semiconductors for production eased, so that dealers reduced their inventories less than a year ago. In this way, Renault sold more cars to dealers, which can be booked in sales. The overall proceeds were as expected by analysts, but the experts had expected more in the car business itself.
Renault makes earnings metrics as in France usually only half-yearly information. The company is sticking to its goal of increasing the operating profit margin to over 5 percent of sales for the year as a whole.
On November 8th, the management wants to report on its further strategy and refresh the medium-term goals at a capital market day. On this day, Renault boss Luca de Meo (55) should report on his restructuring plans and on the plan to split Renault into several business units, which will then be located under the umbrella of a holding company in the future. In an interview with manager magazin, the Italian manager recently outlined the plans
. According to de Meo, Renault wants to bundle six to seven units under the holding company.
In addition, there could then be news about the strategic alliance Nissan give: The French carmaker and its Japanese partner say they are negotiating the future of their alliance. This involves joint strategic initiatives, as both companies confirmed on October 10th. Nissan is considering entering into a new electric car division at Renault, in return for which the French will reduce their 43 percent stake in Nissan to 15 percent. Details were not given.
Renault is pushing ahead with the electrification of its fleet. The carmaker wants to launch 25 new models by 2030, half of them purely electric, as CEO de Meo explained in an interview with manager magazin
. In Europe, Renault wants to sell only purely electric cars from 2030.
At the Paris Motor Show this week, de Meo said that the prices of electric cars will drop to the level of combustion vehicles in the foreseeable future. “I don’t see that parity approaching,” quoted “Automotive News”
the manager.