The car giant Renault took a net loss of 1.3 euros, equivalent to NOK 13 billion, in the first half of the year due to the closure of its Russian operations. In contrast, the company upgraded its outlook for 2022 due to improved profitability elsewhere, according to Reuters.
Renault, which was the most exposed to the Russian car market of the Western carmakers, sold its majority stake in Russia’s biggest carmaker Avtovaz in May for a token amount.
Otherwise, Renault announced that their new strategy, of focusing on selling fewer but more profitable cars, is paying off.
Restructuring
Operating margins in the first half of the year were 4.7 per cent, compared to 2.1 per cent in the same period last year. The forecast for the whole year was revised upwards to over 5 per cent.
CHIEF: Renault boss Luca de Meo, who is satisfied with the company’s half-year results. Foto: Bloomberg
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“Despite all the headwinds related to the stoppage of activity in Russia, semiconductor shortages and cost growth, the group continues to improve operating results,” said Renault CEO Luca de Meo.
Renault, which also makes cars under the Dacia brand and has an alliance with Nissan, is in the early stages of restructuring its business to be more competitive in its move to electric vehicles.
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