Send this page to a friend!
Fill in the form bellow

your name:
your email:
friend name:
friend email:
your comments:
close

Industry

Christopher Bruce2013-02-14 21:14:46

Renault Reports Better Than Expected Financial Results

Already has plans to improve in 2013

 
 
Slideshow
Carlos Ghosn will not accept his bonus for this year but will take it in 2016 if things improve

RenaultRenaultRenaultFrance, 1898 > present189 models
6052 photos
17 videos
released its annual financial results for 2012 today and things were significantly better than expected, and it is already looking at novel ways to boost sales further in the future like selling cars directly online. 

In 2012, Renault had revenue totaling €41.270 billion and had income of €1.77 billion, down 15%. It had an operating income of €729 million, which beat analysts expectations. The automotive part of the company had a loss of €25 million, which pales in comparison to PeugeotPeugeotPeugeotFrance, 1882 > present120 models
3839 photos
7 videos
-Citroën'sCitroënCitroënFrance, 1919 > present94 models
5346 photos
11 videos
loss of €5 billion in write downs, €1.5 billion of which came from its automotive division. Renault's sales in Europe fell 3.2% in 2012.

Renault CEO Carlos Ghosn was not happy with the results and will not accept his €480,000 bonus this year, but if the company bounces back, he will receive the money in 2016. 

For the near future, Renault plans to put less focus on Western Europe and put more emphasis on Russia, India and Africa. It predicts the Indian market will grow by 11% in 2013, while Europe will shrink by another 3%. 

To improve in the near future, Renault is looking for permission to eliminate 8,200 workers from France over the next three years. It also wants a short-term pay freeze, longer working hours and more flexibility to move workers between factories. Although, it will probably have to compromise with its union on most of those measures.

Renault is also developing new vehicles worldwide to boost sales. There will be a new small car specifically aimed at India. A new AlpineAlpineAlpineFrance, 1955 > 199414 models
219 photos
-branded car is being developed with CaterhamCaterhamCaterhamUnited Kingdom, 1973 > present9 models
354 photos
1 video
, and the purchase of AvtoVAZVAZVAZRussian Federation, 1966 > present8 models
47 photos
4 videos
will be used to boost sales in Russia. 

Renault and DaciaDaciaDaciaRomania, 1966 > present11 models
478 photos
3 videos
will also begin selling their cars directly online, and the web sites are planned to be ready Europe-wide by the end of 2014. It is going to take some time for buyers to be ready to purchase cars online; analysts predict that by 2020 4% of global car sales will be directly online.

The Dacia Store website is already available in Italy and allows buyers to configure and make a down payment on their car. More niche automakers like TeslaTeslaTeslaUnited States of America, 2003 > present4 models
206 photos
and FiskerFiskerFiskerUnited States of America, 2007 > present5 models
117 photos
2 videos
already offer their cars this way. 

The process still forces buyers to contact a dealer to pick the car up, but buyers are able to bypass the negotiation process and make their down payment.

Source: Automotive News Europe (1,2,3)

Encyclopedia
RenaultRenault

0 comments

Anonymous

Contribute

publish your news and scoops
Contribute
IndustryTop 10ReviewsCar CultureGeneva Motor ShowElectric CarsHybrid CarsFormula 1

Encyclopedia

close