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Renault, Nissan and the Alliance today said that they are taking new steps to increase value for stakeholders. These include operational projects in Latin America, India and Europe; enhanced strategic agility with new initiatives that partners can join; and a re-balanced Renault Group-Nissan cross-shareholding and reinforced Alliance governance. These have been approved by the Boards of Directors of Renault Group and Nissan Motor.
The transactions contained in the agreements would be subject to regulatory approvals, and completion is expected to occur in the fourth quarter of 2023. In the tangled web of individual country industrial policy this brings some measure of stability to a global, multi-national, politically diverse enterprise as the movement to electrified vehicles and other earth-saving technologies continues. The 24-year-old Alliance covers 100% of the world’s major global vehicle markets with Euro 85 billion in annual purchases. It already shares 60% of its vehicle platforms, and up to 90% of EV architectures, noted Jean-Dominique Senard, Chairman of the Alliance Board at the press conference. The upside for all is survival in a difficult environment, in our view. Senard also said that the French State is completely behind the agreement. Continue reading
January 2023 Western EU Passenger Vehicles Sales Plunge
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Well, the party’s over. The Western European passenger vehicles selling rate (SAAR) fell from 13.1 million units annually in December to 10.7 million units/year in January 2023, according to the latest analysis published by the respected LMC consultancy.* LMC noted that the 2022 year‐end had a stronger selling rate in part due to legislation changes pulling forward sales. However, in monthly registration terms, January 2023 was up 9.8% year‐on‐year (YoY), at 810k units.
“Vehicle supply constraints continues to persist into 2023 for West European countries as the demand for vehicles still outweighs supply. However, our forecast assumes that the production bottlenecks will ease during 2023, resulting in YoY growth in registrations for the year. That said, the market is expected to remain some way down on 2019 levels. From a macroeconomic point of view, West European countries are experiencing recessionary conditions, with higher prices and interest rates squeezing real household incomes. Although a clear downside risk to the outlook comes in the form of a more pronounced macroeconomic decline, order backlogs provide some cushion to this,” LMC said.
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