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Renault closed the year positive despite a loss of production of 200,000 vehicles


Up to date on Friday, July 30, 2021 – 10:23

It anticipates an annual working margin of nearly 3% despite the pandemic, the disaster of elements and the rise in the worth of uncooked supplies

The Renault Arkana, one of the newest launches of the French group.

The Renault Group expects to shut fiscal year 2021 with revenue of nearly 3% in spite of the pandemic, the disaster of elements (semiconductors) and the rise in the worth of uncooked Supplies, based on the common director of the French group, the Italian Luca de meo, throughout the presentation of the monetary outcomes of the first semester of the year.

Positive working margin

The automaker has registered in the first half of 2021 a positive working margin of 654 million euros, which represents 2.8% of the turnover, in comparison with -6.5% that was registered in the first half of 2020 with a damaging end result of -1,203 million euros. And, most significantly, the firm managers count on to get a annual working margin of the similar order when the year ends present.

Vital drop in production

The Renault Group has made this forecast despite the uncertainty what weighs on demand for vehicles all through the world, that the damaging results of semiconductor disaster and the rise in the worth of uncooked supplies. All of these components may result in an necessary production loss of the order of 200,000 models all through the year, as Renault has acknowledged.

Luca de meo

The CEO of the Renault Group, the Italian Luca de Meo.

Fastened value financial savings plan

Nonetheless, Renault Group hopes to get its € 2 billion fastened value financial savings plan one year prematurely: 1,800 million euros have already been achieved, of which greater than 600 million euros on this first semester in comparison with 2019.

New electrical fashions

These outcomes are the end result of our Renaulution strategic plan centered on profitability. They solely mark the first step of our restoration, which ought to speed up with the arrival of new fashions“mentioned Luca de Meo. Final month, Renault launched a extra formidable technique for electrical vehicles (EV), betting on new and inexpensive variations of its iconic small automobiles of the previous (Renault four and Renault 5) to achieve Volkswagen in a quickly rising market – the electrical energy market.

Renault 5 PrototypeThe Renault 5 Prototype.

“We’ve got handed an necessary stage in the restoration of our monetary stability, particularly with our ‘free cash-flow’ which is near equilibrium once more this semester. Our stable liquidity place permits us to proceed our restoration in a serene method, “he added. Clotilde Delbos, Chief Monetary Officer of the Renault Group.

The Group’s turnover reaches 23,357 million euros, which represents a rise of 26.8% in comparison with the first half of 2020. At fixed trade charges and perimeter, the Group’s turnover can have elevated by 31.8%, as reported by Renault by way of a assertion.

Gross sales improve in comparison with 2020

The working margin of the Automotive department (together with AVTOVAZ) is positive and improves greater than 1,700 million euros in comparison with the first half of 2020, despite the pandemic and the element disaster. This has been doable due to Renault Group’s worldwide gross sales have grown by 18.7% in the first half of 2021 in comparison with the first half of 2020, however they signify a lower of -24.2% in comparison with the first half of 2019.

Renault arkanaThe Renault Arkana passes in entrance of the Puerta de Alcal in Madrid.

The ‘Arkana impact’

The product combine impact is positive by 2.9 factors, thanks above all to the launch of the Renault arkana, which marks the renewal of the model in section C, and the outcomes of the industrial vehicles. The ‘Others’ impact, price +6.Eight factors, comes from the improve in the contribution of Elements and Equipment gross sales and the restoration of the community exercise, which had been strongly impacted by the containment measures in the first half of 2020.

The positive web result’s 368 million euros, whereas the operational ‘free cash-flow’ of the Vehicle is near equilibrium (-70 million euros). The online debt of the Vehicle has been lowered by 800 million euros and the liquidity reserves of the Vehicle stood at 16,700 million euros as of June 30, 2021.

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Donna Miller

Donna is one of the oldest contributors of Gruntstuff and she has a unique perspective with regards to Science which makes her write news from the Science field. She aims to empower the readers with the delivery of apt factual analysis of various news pieces from Science. Donna has 3.5 years of experience in news-based content creation, and she is now an expert at it. She loves journalism, and that is the reason, she moved from a web content writer to a News writer, and she is loving it. She is a fun-loving woman who has very good connections with every team member. She makes the working environment cheerful which improves the team’s work productivity.

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