Renault group Q1 sales fell 7.9% to 638,498 units largely because of the ongoing Eurozone crisis. In a global automotive market up 4.6%, the Group posted share gains in the Americas, Eurasia and Euromed-Africa regions. However, in Europe Group sales decreased 20% in a market that was off 8.4%.
The problem was almost entirely in the home French market which shrunk by 19.4%. As a result, Renault Group’s European market share decreased to 9.1%. The EU is heading for its fifth straight year of auto sales declines as politicians and bankers continue to pursue policies that increase unemployment and decrease economic activity. The mix of sales outside Europe reached 46%, up 8 points compared to the first quarter 2011.
In spite of the ongoing internationalization, Renault Group revenues at €9,535 million (~ $12.6 billion) in the first quarter 2012 were down 8.6% year on year. Automotive revenues fell 9.6% to € 9,013 million. Renault Group predicts a 4% growth for the global automotive market (excluding heavy commercial trucks) in 2012, with a 3% to 4% decrease of the European market and a 7% to 8% fall for the French market. Compared to rival Peugeot this is a more optimistic forecast than Peugeot’s -5% decline for Europe and -10% for France.
The Renault Group confirmed its full year objective of generating a positive Automotive operational free cash flow in 2012, with a ratio of capital expenditures and R&D below 9% of Group revenues.
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.
