Renault's Road to Recovery: Navigating Challenges with New Leadership
Renault anticipates a rebound in its operating margin despite a first-half net loss caused by Nissan writedown and market challenges. New CEO Francois Provost aims to maintain profitability amidst tough conditions and strategic shifts, including leveraging new partnerships to reduce costs and improve agility.
Renault's operating margin is expected to rebound in the second half, Finance Chief Duncan Minto revealed, despite the carmaker facing a notable first-half net loss attributed to a Nissan writedown and challenging market conditions that spotlight the tasks ahead for newly appointed CEO Francois Provost.
The French automotive giant reported a net loss of 11.19 billion euros, prompted by a hefty 9.3 billion euros write-off on its Nissan investment. The company's shares fell by 1.8% following the disclosure, after Renault earlier lowered its annual forecast due to adverse market conditions, especially in commercial vehicles.
While Renault aims for a 6.5% operating margin by 2025, down from its previous target, the company remains confident in a turnaround. Minto highlighted that the operational separation of the combustion and hybrid engine business, Horse, and new partnerships with China's Geely and Aramco, are steps toward regaining profitability and market agility.
(With inputs from agencies.)
Google News