The Renault group returned to the green in 2021 by recording a net result of 967 million euros, in particular thanks to an increase in its selling prices, the automotive group said on Friday. After a catastrophic 2020, the group recorded sales of 46.2 billion euros in 2021, up 6.3%, despite a sharp drop in sales with the semiconductor crisis.
The group’s new commercial policy focused on value and not on volume (with vehicles sold more expensively to individuals and less to rental fleets, for example) led to a positive price effect of 5.7 points. With the good sales of the new Arkana SUV and the range of utility vehicles, this policy has made it possible to offset the 4.5% drop in sales over the year, underlines Renault. The order portfolio reached three months of sales in Europe, supported by sales of Dacia, hybrids, electrics and utility vehicles.
The group also underlined that it had carried out its fixed cost savings plan of 2 billion euros a year in advance compared to 2019. Nissan, Renault’s partner in the Alliance, also contributed to its result by up to 380 million euros, after having contributed in large part to the loss of 8 billion euros recorded in 2020. The group will not, however, pay a dividend, pending better days.
Renault will reimburse the State more quickly
“Renault Group has largely exceeded its 2021 financial objectives despite the impact of semiconductor shortages and rising raw material prices,” said Luca de Meo, its chief executive. “This reflects the sustained pace at which the in-depth transformation of the group is advancing, initiated as part of Renaulution”, the strategy presented at the start of 2021 by the group.
For Clotilde Delbos, Chief Financial Officer of Renault, “this performance is linked to the first successes of the Group’s strategy, favoring value over volume, and its strict financial discipline”. “This enabled us to achieve certain Renaulution objectives one or two years in advance over the long term,” said Ms. Delbos.
Renault, which had borrowed four billion euros guaranteed by the French state to get through the pandemic, plans to repay two billion this year, including one in advance in 2023. The entire loan will be repaid no later than the end of 2023. In a sector still heavily impacted by the semiconductor crisis, particularly in the first half, the group forecasts a loss of 300,000 vehicles in 2022 production. Its operating margin should be greater than or equal to 4%, compared to 4.8% in 2019, -0.8% in 2020, and 3.6% in 2021.