Group Renault Q3 – Click to Enlarge
During Q3 2018, Group Renault revenues reached €11,484 million (-6.0%). At constant exchange rates, Group revenues decreased by -1.4%.
Group Renault’s worldwide registrations (passenger cars + light commercial vehicles, including Jinbei and Huasong since January 1, 2018) rose by 2.9% in the third quarter, in a market down 2.4%, resulting in a market share of 4.0% (+0.2 points compared to 2017).
Renault – Dacia Duster 2018 Model.
In Europe, Group registrations increased by 8.6% in a market up 0.8%, mainly due to the success of the B segment models (Clio, Captur) and C segment models (Mégane and New Duster). In the electric vehicle segment, ZOE recorded registrations up 7% and Kangoo Z.E. doubled its sales.
Outside Europe, in a market down 3%, Group registrations decreased by 2%, including Jinbei and Huasong (-10.4% excluding Jinbei and Huasong).
In the Americas, Group registrations were up 0.2% despite the fall in the Argentinian market (-24.9%). In Asia-Pacific, the increase was 72%, including Jinbei and Huasong (-14.8% on an equivalent basis in 2017).
The Group faced a slowdown of its registrations in Africa, Middle East, India (-24.4%) and Eurasia (-5.6%) regions. The Africa Middle East India region was mainly impacted by a decline in India (-34.7%) and in Iran, where our activity was stopped. In Eurasia, registrations continued to increase in Russia (+5.0%), but Turkey sales are down 52.5% in a market down 51.3%.
Q3 Revenues by Operating Sector
As of January 1, 2018, the Group changed the allocation of interest rate subsidies between operating segments, with no impact on consolidated revenues. On a comparable basis, Automotive excluding AVTOVAZ revenues would have been €142 million (1.3 points) higher, offset by an equal decrease in Sales Financing revenues.
Automotive excluding AVTOVAZ revenues amounted to €10,057 million, down 8.4%. Beyond the negative 1.3 points effect mentioned above, revenues were negatively impacted by the sharp devaluation of the Group’s main currencies (Argentinian peso, Brazilian real, Turkish lira, Russian ruble), which led to a negative currency effect of 4.0 points. The pricing policy notably implemented in these countries led to a positive price effect of 1.6 points. The volume effect weighed in at -2.6 points, mainly due to the fall in the Turkish and Argentinian markets and a de-stocking of the dealer network in the third quarter. Finally, the decline in our sales to partners impacted revenues by -3.3 points due to the cessation of our deliveries in Iran, lower demand for diesel engines and lower production for Nissan.
Sales Financing (RCI Banque) posted revenues of €800 million in the third quarter, up 31.1% compared to 2017. Excluding the impact of the accounting change mentioned above, the increase would have been 7.9%. The number of new financing contracts fell 2.5%, mainly due to lower activity in Turkey and Argentina. Average performing assets increased by 12.9% to €45.3 billion.
AVTOVAZ contribution to Group revenues amounted to €627 million in the quarter, down 1.1%, after considering a negative exchange rate effect of -€79 million. At constant exchange rates, revenues would have been up 11.4%.
Outlook 2018
The global market is expected to grow 2% compared to 2017 (previously +3%). The European market is expected to expand more than 1.5% (versus +1.5%) with an increase of more than 4% for France (versus +2%). Outside Europe, Brazil is expected to grow by 10% and Russia by more than 10%. China is expected to grow by 2% (versus +5%), and India by 8%.
Group Renault Confirms Guidance
- Increase Group revenues (constant exchange rates)
- Maintain Group operating margin above 6.0%*
- Generate a positive Automotive operational free cash flow
About Ken Zino
Ken Zino, editor and publisher of AutoInformed, is a versatile auto industry participant with global experience spanning decades in print and broadcast journalism, as well as social media. He has automobile testing, marketing, public relations and communications experience. He is past president of The International Motor Press Assn, the Detroit Press Club, founding member and first President of the Automotive Press Assn. He is a member of APA, IMPA and the Midwest Automotive Press Assn.
He also brings an historical perspective while citing their contemporary relevance of the work of legendary auto writers such as Ken Purdy, Jim Dunne or Jerry Flint, or writers such as Red Smith, Mark Twain, Thomas Jefferson – all to bring perspective to a chaotic automotive universe.
Above all, decades after he first drove a car, Zino still revels in the sound of the exhaust as the throttle is blipped during a downshift and the driver’s rush that occurs when the entry, apex and exit points of a turn are smoothly and swiftly crossed. It’s the beginning of a perfect lap.
AutoInformed has an editorial philosophy that loves transportation machines of all kinds while promoting critical thinking about the future use of cars and trucks.
Zino builds AutoInformed from his background in automotive journalism starting at Hearst Publishing in New York City on Motor and MotorTech Magazines and car testing where he reviewed hundreds of vehicles in his decade-long stint as the Detroit Bureau Chief of Road & Track magazine. Zino has also worked in Europe, and Asia – now the largest automotive market in the world with China at its center.
Group Renault Revenues of €11.5 billion in Q3 2018 or -6%
Group Renault Q3 – Click to Enlarge
During Q3 2018, Group Renault revenues reached €11,484 million (-6.0%). At constant exchange rates, Group revenues decreased by -1.4%.
Group Renault’s worldwide registrations (passenger cars + light commercial vehicles, including Jinbei and Huasong since January 1, 2018) rose by 2.9% in the third quarter, in a market down 2.4%, resulting in a market share of 4.0% (+0.2 points compared to 2017).
Renault – Dacia Duster 2018 Model.
In Europe, Group registrations increased by 8.6% in a market up 0.8%, mainly due to the success of the B segment models (Clio, Captur) and C segment models (Mégane and New Duster). In the electric vehicle segment, ZOE recorded registrations up 7% and Kangoo Z.E. doubled its sales.
Outside Europe, in a market down 3%, Group registrations decreased by 2%, including Jinbei and Huasong (-10.4% excluding Jinbei and Huasong).
In the Americas, Group registrations were up 0.2% despite the fall in the Argentinian market (-24.9%). In Asia-Pacific, the increase was 72%, including Jinbei and Huasong (-14.8% on an equivalent basis in 2017).
The Group faced a slowdown of its registrations in Africa, Middle East, India (-24.4%) and Eurasia (-5.6%) regions. The Africa Middle East India region was mainly impacted by a decline in India (-34.7%) and in Iran, where our activity was stopped. In Eurasia, registrations continued to increase in Russia (+5.0%), but Turkey sales are down 52.5% in a market down 51.3%.
Q3 Revenues by Operating Sector
As of January 1, 2018, the Group changed the allocation of interest rate subsidies between operating segments, with no impact on consolidated revenues. On a comparable basis, Automotive excluding AVTOVAZ revenues would have been €142 million (1.3 points) higher, offset by an equal decrease in Sales Financing revenues.
Automotive excluding AVTOVAZ revenues amounted to €10,057 million, down 8.4%. Beyond the negative 1.3 points effect mentioned above, revenues were negatively impacted by the sharp devaluation of the Group’s main currencies (Argentinian peso, Brazilian real, Turkish lira, Russian ruble), which led to a negative currency effect of 4.0 points. The pricing policy notably implemented in these countries led to a positive price effect of 1.6 points. The volume effect weighed in at -2.6 points, mainly due to the fall in the Turkish and Argentinian markets and a de-stocking of the dealer network in the third quarter. Finally, the decline in our sales to partners impacted revenues by -3.3 points due to the cessation of our deliveries in Iran, lower demand for diesel engines and lower production for Nissan.
Sales Financing (RCI Banque) posted revenues of €800 million in the third quarter, up 31.1% compared to 2017. Excluding the impact of the accounting change mentioned above, the increase would have been 7.9%. The number of new financing contracts fell 2.5%, mainly due to lower activity in Turkey and Argentina. Average performing assets increased by 12.9% to €45.3 billion.
AVTOVAZ contribution to Group revenues amounted to €627 million in the quarter, down 1.1%, after considering a negative exchange rate effect of -€79 million. At constant exchange rates, revenues would have been up 11.4%.
Outlook 2018
The global market is expected to grow 2% compared to 2017 (previously +3%). The European market is expected to expand more than 1.5% (versus +1.5%) with an increase of more than 4% for France (versus +2%). Outside Europe, Brazil is expected to grow by 10% and Russia by more than 10%. China is expected to grow by 2% (versus +5%), and India by 8%.
Group Renault Confirms Guidance
About Ken Zino
Ken Zino, editor and publisher of AutoInformed, is a versatile auto industry participant with global experience spanning decades in print and broadcast journalism, as well as social media. He has automobile testing, marketing, public relations and communications experience. He is past president of The International Motor Press Assn, the Detroit Press Club, founding member and first President of the Automotive Press Assn. He is a member of APA, IMPA and the Midwest Automotive Press Assn. He also brings an historical perspective while citing their contemporary relevance of the work of legendary auto writers such as Ken Purdy, Jim Dunne or Jerry Flint, or writers such as Red Smith, Mark Twain, Thomas Jefferson – all to bring perspective to a chaotic automotive universe. Above all, decades after he first drove a car, Zino still revels in the sound of the exhaust as the throttle is blipped during a downshift and the driver’s rush that occurs when the entry, apex and exit points of a turn are smoothly and swiftly crossed. It’s the beginning of a perfect lap. AutoInformed has an editorial philosophy that loves transportation machines of all kinds while promoting critical thinking about the future use of cars and trucks. Zino builds AutoInformed from his background in automotive journalism starting at Hearst Publishing in New York City on Motor and MotorTech Magazines and car testing where he reviewed hundreds of vehicles in his decade-long stint as the Detroit Bureau Chief of Road & Track magazine. Zino has also worked in Europe, and Asia – now the largest automotive market in the world with China at its center.