Renault Group
Company Renault Group Performance indicators 2022  Revenue growth of 114% to €4639 billion loss - 700 million euros 2021  Revenue growth to €462 billion Russia second largest market after France History 2023  Insight investment group bought Renault leasing subsidiary Renault spun off its electric vehicle division into Renault Ampere Renault dealers began to receive original parts through Lada-Image Net loss of €23 billion from termination of operations in Russia Nationalization of assets in Russia with the right to repurchase within 6 years Plan to transfer the stake in Avtovaz to NAMI with the possibility of repurchase within 6 years Renault's Russian sales fall sharply amid Avtovaz downtime Daimler sold its stake in Renault for 305 million euros Sale of a stake in Daimler for 114 billion euros Reduction in revenue by 217% to 4347 billion euros net loss - 805 billion euros Reduction of almost 15 thousand jobs 2019  Collaborations with Orange and Ericsson to develop vehicle interaction system via 5G 1917  Tank Production Notes Boulogne-Biyankur Europe Mechanical and Instrument Engineering
Company Renault Group, Performance indicators, 2022  Revenue growth of 114% to €4639 billion loss - 700 million euros, 2021  Revenue growth to €462 billion, Russia second largest market after France, History, 2023  Insight investment group bought Renault leasing subsidiary, Renault spun off its electric vehicle division into Renault Ampere, Renault dealers began to receive original parts through Lada-Image, Net loss of €23 billion from termination of operations in Russia, Nationalization of assets in Russia with the right to repurchase within 6 years, Plan to transfer the stake in Avtovaz to NAMI with the possibility of repurchase within 6 years, Renault's Russian sales fall sharply amid Avtovaz downtime, Daimler sold its stake in Renault for 305 million euros, Sale of a stake in Daimler for 114 billion euros, Reduction in revenue by 217%, to 4347 billion euros, net loss - 805 billion euros, Reduction of almost 15 thousand jobs, 2019  Collaborations with Orange and Ericsson to develop vehicle interaction system via 5G, 1917  Tank Production, Notes
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Renault Group started manufacturing cars in 1898. Since March 1999 Nissan , together the French automobile building with Renault, it has been part of the Alliance. Renault-Nissan

Performance indicators

2022: Revenue growth of 11.4% to €46.39 billion; loss - 700 million euros

Renault Group's revenue reached €46.39 billion in 2022, up 11.4% from a year earlier. The company made a net loss of 700 million euros, while in 2021 there was a net profit of 967 million euros. The French automaker published its reports on February 16, 2023. The loss is caused by a write-off of 1.36 billion euros, reflected in the first financial half of the year due to the termination of operations in Russia, the group said.

The losses incurred are quite sensitive even for such a large automaker as Renault Group, experts say. According to Sergei Burgazliev, an independent consultant for the automotive industry, it will be very difficult for the company to compensate for them in a short time. For example, the creation of a full-fledged automobile plant with stamping, with a capacity of 200-250 thousand cars per year, costs about €1 billion, the expert said in a conversation with Izvestia.

For Renault, the loss of AvtoVAZ is very sensitive. In addition to the fact that Lada models are the most popular cars on the Russian market, they are also high-margin. Lada Granta and Lada Largus were among the most profitable models in the Renault Group portfolio. It will be very problematic to compensate for their loss, "says Sergei Burgazliev.

According to Renault materials, in 2022, sales of the group's cars amounted to 43.12 billion euros, which is 11.4% higher than a year ago. Excluding currency fluctuations (first of all, we are talking about the devaluation of the Turkish lira and the Argentine peso), the growth was 12.6%. Net debt of the group's automotive division decreased by 0.5 billion euros - from 1.6 billion to 1.1 billion euros by the end of December 2022.

Renault Group 2022

2021: Revenue growth to €46.2 billion, Russia second largest market after France

In 2021, Renault's revenue grew by 6.3%, to 46.2 billion euros, in 2020 the figure was 43.4 billion euros. The carmaker's net profit for 2021 reached 967 million euros, while a year earlier there were losses.

According to Renault's financial report, AvtoVAZ's contribution to the company's revenue in 2021 amounted to 2.85 billion euros, which is 10.4% more than in 2020.

In total, in 2021, Renault sales reached 2,696,401 cars, in Europe the figure reached 1,428,426, of which 982,391 fell on Renault, 441,984 units on Dacia, 2,439 on Alpine, 1,612 on Lada.

In the MENA region, 150.782 cars were sold in 2021, of which 90.329 were Renault, 56.158 were Dacia, 1 was Alpine, 3.468 were Lada, Jinbei & Huasong - 194.138.

659,964 cars were sold in Eurasia, of which 241,403 were Renault, 38,953 were Dacia, 379,425, 183 were AVTOVAZ. In Latin America, 263.091 units were sold, of which 262.420 were Renault, 570 were Lada, 110 were Jinbei & Huasong.

521,710 cars were sold in France during the period under review, in Russia - 482,264, in Germany - 177,795, in Italy - 154,093, in Brazil - 127.159, in Turkey - 116.175, in Spain - 115.543, in India - 95.878, in Morocco - 69.791, in the UK - 68.344, in South Korea - 68.344, in Poland - 51.595, in Belgium - 51.074, in Romania - 48.303, in Colombia 47.606.

Renault Group continues its sales policy launched in the third quarter of 2020, which leads to an increase in the share of sales in the most profitable channels. In the five main European countries France(,,, and Germany Spain), Italy Great Britain the share of sales to retail customers by the end of 2021 is 58%, which is 6 points more compared to 2019. The Renault brand is strengthening its position in the To Europe electric vehicle market: in 2021, 30% of cars sold were electrified, in 2020 this figure was 17%. The Lada brand continues to lead the Russian market, the share is close to 21%. and Lada Lada Vesta Granta occupy the first and second place in the sales rating, respectively.[1]

History

2023: Insight investment group bought Renault leasing subsidiary

On August 11, 2023, it became known about the sale of RNL Leasing (part of the French financial group RCI Bank & Services; the company is a subsidiary of the French automaker) of the Russian investment group Insight. Read more here.

2022

Renault spun off its electric vehicle division into Renault Ampere

On November 8, 2022, French automaker Renault announced a restructuring in which the electric vehicle division will spin off into a new company called Ampere. It is planned to be put on the Euronext Paris exchange no earlier than the second half of 2023. Read more here.

Renault dealers began to receive original parts through Lada-Image

In August 2022, Russian Renault car dealers began to receive original spare parts through their subsidiary, AvtoVAZ the distributor of spare parts. Lada Image Earlier, the supply of these spare parts was suspended due to the departure of Renault from Russia after the start of the special operation of the Russian Armed Forces on. To Ukraine

Net loss of €2.3 billion from termination of operations in Russia

In July 2022, Renault estimated a net loss from the termination of operations in Russia at €2.3 billion.

Nationalization of assets in Russia with the right to repurchase within 6 years

Renault's Russian assets are becoming state ownership, the Ministry of Industry and Trade of the Russian Federation said on May 16, 2022. The share in AvtoVAZ is FSUE NAMI (67.69% of the shares), the remaining shares of the carmaker will be retained by Rostec Group of Companies, the Renault Russia plant will be owned by the Moscow Government (100% of the shares).

The Renault plant will produce cars under the Moskvich brand, said Moscow Mayor Sergei Sobyanin. The revived Muscovites will become electric vehicles in the future.

Maintenance of Renault cars in the Russian Federation will now be carried out by AvtoVAZ.

KAMAZ will become the main technological partner of the revived Moskvich Moscow Automobile Plant.

The deal to nationalize Renault's assets implies the possibility of a repurchase of the stake by a foreign concern over the next six years.

Plan to transfer the stake in Avtovaz to NAMI with the possibility of repurchase within 6 years

In April 2022, Renault decided to transfer its 68% stake in Avtovaz to the Russian side with the possibility of its buyback within five to six years, most likely the NAMI institute will receive it, said Denis Manturov, head of the Ministry of Industry and Trade of the Russian Federation. According to him, we are not talking about nationalization, but it will be a deal "for the ruble."

He noted that Renault will transfer its stake in the Moscow enterprise to the Moscow government, other cars will be produced there. The decision was made against the background of Russia's special operation in Ukraine.

Renault's Russian sales fall sharply amid Avtovaz downtime

Deliveries of Lada cars produced by the Russian company Renault fell by 56% in March 2022 compared to the same month last year amid a special operation by Russia in Ukraine. This is the ninth monthly decline in a row for the brand.

In general, sales of Renault cars and commercial vehicles in Russia in March fell by 64% compared to the global drop in sales by 25%.

AvtoVAZ's business, which Renault owns a majority stake in, has made the French company the most conflict-prone automaker in Ukraine. In March, the manufacturer announced that it was suspending production at its plant in Moscow and evaluating developments.

2021

Daimler sold its stake in Renault for 305 million euros

On November 10, 2021, the German automaker Daimler announced the sale of all its shares in the French concern Renault, eroding cross-ownership of shares, but added that its industrial cooperation remains unchanged. Read more here.

Sale of a stake in Daimler for 1.14 billion euros

On March 12, 2021, Renault announced the sale of its entire stake in Daimler for 1.14 billion euros. That deal, through a fast-track bid collection, would not affect cooperation between the two automakers, Renault said.

Renault said in a statement that the company sold 16.45 million shares, corresponding to a 1.54% stake in Daimler, at a price of 69.5 euros per share.

The shares were sold to qualified investors, including the Aabar Investments investment fund (it owns 9.1% of Daimler). About 39% of the securities of the German concern are in the portfolios of German investors, another third - among investors of other EU countries.

Proceeds from this sale will allow Renault Group to accelerate the process of deleveraging... The industrial partnership between Renault Group and Daimler AG remains unchanged, and this financial deal will not affect it, Renault said.

The Renault-Nissan alliance exchanged a stake with Daimler as part of a stronger manufacturing partnership. Initially, the alliance was given a share of 3.1% of the German concern (divided in half between Renault and Nissan), which, in turn, received 3.1% each in Renault and Nissan.

Due to the COVID-19 coronavirus pandemic, reduced demand for cars and a global shortage of chips, Renault's losses in 2020 reached a record €8 billion, and the company's net debt reached €3.6 billion, compared with €1.7 billion in 2019.

Over the past 11 years, Renault-Nissan and Daimler have partnered on several major projects. Among them - Infiniti QX30, built on the basis of Mercedes-Benz GLA; Mercedes-Benz X-Class, made on the basis of Nissan Navara; Mercedes-Benz Citan vans based on Renault Kangoo; 1.3-liter co-developed gasoline turbo engine, etc.[2]

2020

Reduction in revenue by 21.7%, to 43.47 billion euros, net loss - 8.05 billion euros

Against the backdrop of the COVID-19 pandemic in 2020, the French automaker Renault recorded a financial loss of 8 billion euros. These are the largest financial losses of the company for the entire time of its activities.

The carmaker said that the company's revenue in 2020 decreased by 21.7%, reaching 43.47 billion euros, against 55.53 billion euros. Renault received a net loss of 8.05 billion euros, while Refinitiv analysts expected a loss of 7.4 billion euros. At the end of 2019, the net profit of the French automaker was measured at 19 million euros.

The main losses of the French automaker, approximately 5 billion euros, are associated with cooperation with its Japanese partner Nissan - Renault owns a 43% stake in the company. The alliance of automakers, which also includes Mitsubishi Motors, was going through difficult times even before the crisis caused by COVID-19, in particular due to the arrest of the ex-head of Nissan and Renault Carlos Ghosn in 2018. Renault's new CEO Luca de Meo is pushing ahead with plans to boost profits, restore a troubled partnership with Nissan and cut costs (€2bn over the next three years) by closing businesses and cutting 14,600 jobs.

Luc de Meo noted that the priorities for the company remain the goals that were identified in the "Renaulution" program, namely, increasing revenues from the sale of each car and the accumulation of money supply. It is known that the automaker has already managed to form cash reserves in the amount of 16.4 billion euros, 4 billion euros of which are loans guaranteed by the state. The recovery plan also calls for an increase in operating margins of more than 3% by 2023 and at least 5% by the middle of the decade.

In the fast-growing electric vehicle market, the Renault brand reaffirmed its lead in Europe by selling 115,888 vehicles, up 101.4% from 2019, the manufacturer said in a statement.[3][4]

Reduction of almost 15 thousand jobs

At the end of May 2020, Renault announced mass layoffs, which were the result of the collapse of the car market due to the COVID-19 coronavirus pandemic. The French automaker is cutting almost 15,000 jobs and taking other cost optimization measures to reduce them by 2 billion euros over three years. The program will cost the company 1.2 billion euros.

At the first stage, Renault will liquidate about 4.6 thousand working positions in France, and then reduce more than 10 thousand places around the world. By the end of May 2020, the company employs a total of about 180 thousand people.

The state adjustment project will be based on retraining measures, internal mobility and layoffs of their own free will, the auto giant said in a press release.

Renault also intends to cut car production from 4 million units in 2019 to 3.3 million in 2024. The company plans to suspend planned projects to increase production capacity in Morocco and Romania, as well as explore the possibilities of adapting the production capacity of Renault Group in Russia and rationalizing the production of gearboxes worldwide.

According to the Financial Times, to overcome the crisis caused by the COVID-19 pandemic, Renault agreed a loan of 5 billion euros from its banks under the guarantee of the French state.

The automotive industry is facing a severe drop in demand amid the coronavirus pandemic. According to the European Association of Automakers, in January-April 2020, the demand for cars in the EU fell by 38.5% compared to the same period in 2019, which is a record. The strongest drop of almost 50% was recorded in three key countries for Renault - Italy, Spain and France. In Germany, demand collapsed by 30%.[5]

2019: Collaborations with Orange and Ericsson to develop vehicle interaction system via 5G

On April 30, 2019, it became known about the intention of Renault, Orange and Ericsson to work together on a system for interacting connected vehicles using 5G. Read more here.

1917: Tank Production