Business

Renault says revenue climbed, supply-chain woes remain

Car-maker raised its full year outlook in July

The unveiling of the Renault 4Ever Trophy all-electric concept vehicle during the opening day of the Paris Motor Show in Paris earlier this week. The company said on Friday the chips shortage remains a problem. Photographer: Nathan Laine/Bloomberg

Fri Oct 21 2022 - 09:33

Renault’s third-quarter revenue advanced on strong demand for new electric models such as the Megane E-Tech, even as ongoing supply-chain constraints weighed on production.

Group revenue climbed 21 per cent to €9.8 billion in the period, in line with analysts’ estimates, the French company said Friday. Renault reaffirmed its guidance for 2022.

Commercial sales, however, were hampered by a persistent shortage of semiconductors, declining 2.4 per cent from the same period last year, the carmaker said. Automotive revenue rose to €9 billion.

The third-quarter growth “continues to reflect our commercial policy focused on value, chief financial officer Thierry Pieton said in the statement, adding that the carmaker has improved pricing and focused on its most profitable channels.

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Renault raised its full-year outlook in July as it sought to move past a costly withdrawal from Russia that led to a first-half loss. Chief executive Luca de Meo and his team are now working to carve out the company’s electric-vehicle and combustion engine businesses, a plan they will give more details on next month. Renault also is in ongoing talks with Japanese partner Nissan to reshape their two-decade old alliance, with the two companies closing in on an agreement.

Under the possible deal with Nissan, Renault would reduce its stake over time to 15 per cent from the current 43 per cent, people familiar with the situation have said. In return, Nissan is planning to invest $500 million €511.5 million) to $750 million for about 15 per cent of Renault’s EV business Ampere, which is being split from the combustion-engine and power-train operations as part of de Meo’s strategy.

The company is due to hold a capital markets day November 8th to give an update on its midterm financial targets and more details on the carve-out plans. — Bloomberg

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