Renault says Q3 revenue up but supply woes remain

RENAULT’S automotive revenue climbed less than expected in the third quarter, as ongoing supply-chain constraints weighed on carmakers’ ability to meet strong demand for battery-powered vehicles.

Revenue advanced 22 per cent to €9 billion (S$12.5 billion), the French company said on Friday (Oct 21), falling short of the €9.6 billion projected by analysts in a Bloomberg Consensus survey.

Commercial sales declined 2.4 per cent from the same period last year, limited by the semiconductor shortage. Group revenue rose to €9.8 billion, and Renault confirmed its guidance for 2022.

Chief executive officer Luca de Meo and his team are in the final stages of talks with Japanese partner Nissan Motor to rebalance their two-decade old alliance. Renault raised its full-year outlook in July as it sought to move past a costly withdrawal from Russia that led to a first-half loss.

Under the possible deal with Nissan, Renault would reduce its stake over time to 15 per cent from the current 43 per cent, people familiar with the situation said earlier this week. In return, Nissan is planning to invest US$500 million to US$750 million for about 15 per cent of Renault’s EV business Ampere, which is being split from the combustion-engine and powertrain operations as part of de Meo’s strategy. 

The company is due to hold a capital markets day Nov 8 to give an update on its financial targets and more details on the carve out plans. BLOOMBERG