A strong start, but Japan production disruptions this summer the result of the earthquake cloud outlook.
Group sales were “lifted by stronger markets and our good international sales performance,” Chief Executive Officer Carlos Ghosn said in a statement. Ghosn reaffirmed the company’s €500 million cash flow target for 2011, but because of uncertainties caused by the Japan earthquake and ongoing production stoppages, Ghosn refused to increase his forecast for the year even though Q1 sales was well ahead of plan. The ongoing forecast simply says the both sales and revenues will increase in 2011.
Things remain tough in Europe for Renault, though, in a passenger car and light commercial vehicle market that fell slightly (1%), Renault Group sales dropped 3.7%, due mainly to supply constraints in the first quarter.
As a result of overseas sales the Renault Group increased revenues 15.% to €10,431 million in the first quarter of 2011. Automotive revenues rose 15.3% (or 14% excluding currency effects) compared to Q1 2010. The strong revenue increase was mainly attributable to increased sales of new vehicles, improved product mix, and increased business with partners such as Nissan.
The Renault brand was number two in Europe, with 8.9% of the passenger car and light commercial vehicle market (down 0.3 points on the first quarter of 2010), moving up one place compared with last year. Volkswagen remains firmly entrenched in the Number One position. (See Volkswagen Group Sets Q1 and March Sales Records)
In the light commercial vehicle market, Renault brand sales increased 12% in a recovering market (8.6%). The Renault brand with its 15.4% commercial share consolidated its position as leader, with a significant 3.2-point lead over its nearest rival, compared with 0.9 point in the first quarter of 2010.
Outside Europe, VW Group sales rose 26.6% in the first quarter to a record 259,308 units, accounting for 37% of the Group’s total sales (six points higher than in Q1 2010).
In the Eurasia Region, sales rose 88.2% in markets that grew 66.4%, thanks to the success of new products, in particular Sandero. The Group had a 6.0% share of the Russian market, up 0.5 point compared with Q1 2010.
In the Euromed Region, where markets grew 37.0%, sales were up 33.0% amid contrasting country performances. The Group did well in Turkey, reporting a 120% increase in sales and raising its market share by 3.3 points owing in particular to the success of Mégane and Fluence. Sales in Romania, meanwhile, fell 27.1% in a market that was down 15.0%.
In the Americas Region, sales hit records for both volume and market share. Sales climbed 35.3% in markets that rose 12.6%, while market share advanced by one point compared with Q1 2010 to 6.0%. Brazil was the VW Group’s third-largest market in the first quarter of 2011.
In the Asia-Africa Region, Group sales declined 2.3% in markets that were up 3.5%. Renault Samsung Motors in Korea had to contend with an unfavorable comparison basis and a major offensive by competitors.
As announced, Renault made an early repayment in two installments – February and April – of the remaining €2 billion on the loan provided by the French government in April 2009 as eh global financial markets were collapsing.
