As announced in early July, the accounting evolution of the treatment of its Japanese partner and its poor results imply a net loss of 11.2 billion euros in Renault’s accounts.
But even apart from this exceptional element, “our results of the first semester, in a difficult market context, were not online with our initial ambitions,” the new managing director of the group said François Provost.
“We have already launched a set of measures to achieve our objectives. Nevertheless, Renault Group’s profitability remains a reference in our industry, and we are determined to maintain this standard,” continued the former director of purchasing, partnerships and public affairs that have become a boss of the group in the diamond on Thursday.
The environment is “difficult in Europe, marked by the drop in the + retail + market (individual customers) and by a high -declining utility vehicle market, which generates increased commercial pressure,” said the manufacturer.
The turnover of the French manufacturer (Brands Renault, Dacia, Alpine) reached 27.6 billion euros in the first half, still growing by 2.5% over a year.
But Renault revised slightly downwards its annual objectives in mid-July because of the “deterioration of the dynamics of the automotive market”.
“Our fundamentals remain unchanged and we intend to preserve our approach, favoring value (sales, editor’s note) rather than volume,” said Renault’s financial director Duncan Minto during a press conference.
“In the current context, having the most attractive range of products is the best protection. While some competitors act desperately against common sense,” he added.
The group also paid 279 million euros this semester to Horse, its joint venture of thermal engines with Geely and Aramco.
He also provisioned 98 million euros in anticipation of possible European penalties on CO2 emissions from his cars.
The automaker now targets operating margin around 6.5% of turnover, against a margin greater than or equal to 7% previously.
He indicated that he had strengthened his cost reduction plan, on the side of administrative costs as production and research and development costs.
