On Friday, April 26, 2019, Renault decided to keep up its annual target even as it experienced a loss in “overseas sales and business” in partnership with Nissan, whereby amounting a revenue drop of 4.8% in the Q1.
However, the French auto manufacturer stressed that both the companies are discussing about arriving at a “more permanent structure” for their collaboration. The said alliance received a blow as the ex-chairman as well as the C.E.O Carlos Ghosn was removed due to its “alleged financial misconduct”.
Renault experience a drop in its revenue to “12.527 billion euros (£10.8 billion) for January-March”, while deliveries came down by 5.6% which is equivalent to “908,348 vehicles”. As it is seen sales figures in the Q1 showed a poor performance outside Europe, while the latter saw a growth of 2% in sales following the contraction of “global auto market” by 7.2%, revealed the Sales Chief at Renault, Olivier Murguet, in a “presentation to reporters and analysts”.
Renault has struggled with tight “emissions standards” while shifting away from diesel and Murguel added:
“In this context, Renault outperformed the market”.
Jean-Dominique Senard, the new chairman if Renault, is leading the company into “tie-up talks” which was initiated under Ghosn, as an attempt to provide a “more permanent structure” to the alliance, this has been made mandatory by the Government of France which holds 15% stake in Renault.
While, the C.F.O, Clotilde Delbos stated:
“What we want is for the alliance to be irreversible. This is what we’re pursuing collectively with Nissan - that hasn’t changed.”
Renault is in the process of winding up “Renault-Nissan BV” as the latter fell prey to the “Ghosn scandal” and it proposes to create a “new joint company in a third country”. As per Reuters:
“Shares in Renault rose 1.5 percent to 60.47 euros at 0834 GMT, despite its quarterly revenue figure falling slightly short of the 12.6 billion expected by analysts, based on the median of nine estimates in an Infront Data poll”.
Renault also revealed about its upcoming model launch which will include “new Clio mini” as the company expects to see a rise in the sales figures later in 2019, whereby adhering “full-year guidance” such as “higher revenue, positive automotive cash flow and an operating margin close to 6 percent”.
Moreover, Renault slashed down its “2019 global auto market growth forecast” to a -1.6% keeping “a previously stable outlook” in mind. In the Q1, improvements in pricing coupled with a shifting demand trend towards “more expensive vehicles” has proven to be a revenue booster by 1.3%, whereby “countering exchange-rate setbacks”.
On the other hand, selling to partners created a “negative 3.1 percent revenue effect”, for Daimler and Nissan purchased “fewer diesel engines and the “Nissan SUVs” sales in the U.S. also slowed down. Raghav Gupta-Chaudhary, an analyst from Citi, said:
“Volumes were softer than expected, and price did not come close to offsetting the (currency) headwind in the quarter”.
However, the markets seem to remain focussed on the survival of the alliance post Ghosn shock, noted Raghav Gupta-Chaudhary.
References:
reuters.com
However, the French auto manufacturer stressed that both the companies are discussing about arriving at a “more permanent structure” for their collaboration. The said alliance received a blow as the ex-chairman as well as the C.E.O Carlos Ghosn was removed due to its “alleged financial misconduct”.
Renault experience a drop in its revenue to “12.527 billion euros (£10.8 billion) for January-March”, while deliveries came down by 5.6% which is equivalent to “908,348 vehicles”. As it is seen sales figures in the Q1 showed a poor performance outside Europe, while the latter saw a growth of 2% in sales following the contraction of “global auto market” by 7.2%, revealed the Sales Chief at Renault, Olivier Murguet, in a “presentation to reporters and analysts”.
Renault has struggled with tight “emissions standards” while shifting away from diesel and Murguel added:
“In this context, Renault outperformed the market”.
Jean-Dominique Senard, the new chairman if Renault, is leading the company into “tie-up talks” which was initiated under Ghosn, as an attempt to provide a “more permanent structure” to the alliance, this has been made mandatory by the Government of France which holds 15% stake in Renault.
While, the C.F.O, Clotilde Delbos stated:
“What we want is for the alliance to be irreversible. This is what we’re pursuing collectively with Nissan - that hasn’t changed.”
Renault is in the process of winding up “Renault-Nissan BV” as the latter fell prey to the “Ghosn scandal” and it proposes to create a “new joint company in a third country”. As per Reuters:
“Shares in Renault rose 1.5 percent to 60.47 euros at 0834 GMT, despite its quarterly revenue figure falling slightly short of the 12.6 billion expected by analysts, based on the median of nine estimates in an Infront Data poll”.
Renault also revealed about its upcoming model launch which will include “new Clio mini” as the company expects to see a rise in the sales figures later in 2019, whereby adhering “full-year guidance” such as “higher revenue, positive automotive cash flow and an operating margin close to 6 percent”.
Moreover, Renault slashed down its “2019 global auto market growth forecast” to a -1.6% keeping “a previously stable outlook” in mind. In the Q1, improvements in pricing coupled with a shifting demand trend towards “more expensive vehicles” has proven to be a revenue booster by 1.3%, whereby “countering exchange-rate setbacks”.
On the other hand, selling to partners created a “negative 3.1 percent revenue effect”, for Daimler and Nissan purchased “fewer diesel engines and the “Nissan SUVs” sales in the U.S. also slowed down. Raghav Gupta-Chaudhary, an analyst from Citi, said:
“Volumes were softer than expected, and price did not come close to offsetting the (currency) headwind in the quarter”.
However, the markets seem to remain focussed on the survival of the alliance post Ghosn shock, noted Raghav Gupta-Chaudhary.
References:
reuters.com