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Renault Faces a Van‑Market Wipeout
Renault’s first‑half net profit fell 69 % to 461 million euros after a sharp drop in sales of the European retail and commercial van market.
In the same period the company recorded an extraordinary loss of 11.6 billion euros – mainly linked to its stake in Nissan. The loss includes the 9.3 billion euros announced early this month when Renault switched the accounting treatment of the Nissan stake so that it no longer impacts the group’s operating results.
- Renault’s reliance on Europe – the market has not yet recovered from the pandemic‑era slump and contracted 1.9 % in the first half of the year.
- Strategic loss of Luca de Meo – the former chief executive left Renault for Kering; the company replaced him with long‑time veteran François Provost.
Provost said the first‑half results were “not aligned with our initial ambitions” but highlighted that Renault is “determined to maintain this standard” and to raise its operating margin from 6.0 % to 6.5 % for the full year.
Competitive Margin Landscape
- Renault – operating margin 6.0 % (down 2.1 pp)
- Stellantis – margin 0.7 % in the first half
- Volkswagen – margin 4.7 %
Renault’s revenue rose 2.5 % overall, but automotive revenue edged only 0.5 % higher in the first half of the year.
Share Performance
Renault shares were down 0.4 % in late morning trading while the CAC 40 index was 0.2 % lower.
