Latest news with #FrancoisProvost
Time of India
02-08-2025
- Automotive
- Time of India
Revving up: Renault gets keys to Nissan's TN plant
Renault has bought its partner Nissan 's 51 per cent stake in its joint venture plant near Chennai, four months after announcing the deal. With the completion of the acquisition, the French auto major has become the sole owner of the Oragadam facility in Tamil Nadu. Renault expects to strengthen its sales in the Indian market and step up exports. Japan's Nissan, which has struggled to gain market share in India, will now pay Renault to manufacture its models at the Chennai plant in a contract manufacturing arrangement. "India is a key market for Renault Group and also plays a vital role in our global R&D footprint. With full ownership of our plant in Chennai, we now have all the means to accelerate in India," said Renault Group CEO Francois Provost. Since its launch in 2010, the Chennai plant has produced over 2.8 million vehicles - including 1.2 million exported to more than 100 countries - as well as 4.6 million engines and gearboxes. Supported by nearly 300 local suppliers, the plant has an annual production capacity of over 400,000 vehicles and it is currently using nearly 50 per cent of it. Renault expects the capacity utilisation at the plant to improve as new models for both Renault and Nissan roll out of Oragadam. The plant is preparing to host Renault Group's new multi-energy modular platform, which will "support the Renault brand's future models", a statement said. Renault has appointed Stephane Deblaise as its India CEO effective Sept 1, 2025 to lead the next phase of the French auto major's strategy here. The new strategy is bullish on the local market's importance in the group's global strategy. "Renault Group looks to India as a key driver of international expansion" the statement said. It added that this move is part of a broader momentum, highlighted by the opening of the group's largest design centre outside France, announced in April, and the launch of the new Triber - the first model in a product offensive that will include four new vehicles.
Time of India
02-08-2025
- Automotive
- Time of India
What are the main issues facing new Renault CEO Provost?
Incoming Renault CEO Francois Provost will take the helm of the French automaker at a time when it is beginning to show cracks in its recent success, revising down its full year profit forecast earlier this month due to weaker sales volumes. Below are some of the challenges ahead for Provost when he takes over on Thursday: Tougher competition While Renault has been largely protected from U.S. tariffs because it does not sell in the United States, it has been indirectly hit by increased commercial pressure as European competitors looking for new markets outside the U.S. step up efforts to sell in the French firm's home region. The company reported zero growth in second quarter sales volumes, and warned of weak sales performance in June. It is also facing rising competition from Chinese entrants, both in electric vehicles and hybrids. Analysts at Barclays say Renault may have seen slower price-mix momentum in the first half of the year. The company is scheduled to report full results for the first half on Thursday. Dependency on Europe and cars With sluggish growth in Europe where Renault sells more than 70% of its cars, it needs to expand in emerging markets. It has already outlined plans to invest 3 billion euros ($3.4 billion) to launch eight new models under the Renault brand for non-European markets by 2027. It will also target developing less cyclical businesses beyond autos, such as EV charging and financial services, as part of a mid-term strategy which former CEO Luca de Meo had aimed to unveil later this year. Too small, less independent Conscious that its small size does not allow it to fund the development of electrified and autonomous vehicles, Renault has set up numerous partnerships, including with China's Geely in Korea and in combustion and hybrid engines around the world, and with Volvo Group in electric vans. However, this strategy has raised concerns among unions that the company could lose its in-house know-how and its independence. Renault, ranking only 15th in volumes globally, is frequently the subject of rumours of a tie-up with larger peer Stellantis. Partnerships with Geely also have some worried about potential leverage by China, though Renault's main shareholder, the French state, says the tie-ups do not compromise the company's ability to remain independent. A high place of launches Under de Meo, Renault launched one of the biggest product renewals in its history, with a record 10 launches and two facelifts last year. It is planning another seven launches and two facelifts in 2025, including of the Renault 4 and the Dacia Bigster, and eight more in 2026, according to sources familiar with the matter. Key to increasing market share, new launches also require significant investment in marketing and industrial fine-tuning to deliver cars on time, at the right quality. Van hoes A leader in Europe's high profit commercial vehicles market, Renault's van sales plunged by 29% in the first half due to a softer economy, and an overhaul of its models and product offering. Getting back to investment grade One of Renault's top priorities is to get its credit rating back to investment grade to attract new investors, while also boosting its market cap, currently only at 10 billion euros versus Stellantis' 23 billion euros. Renault's debt is rated Ba1 by Moody's and BB+ by S&P Global, one notch below investment grade. Nissan Since starting to rebalance its partnership with Nissan in early 2023, Renault has done three share sales, and reduced its stake in its Japanese partner to 35.7% (17.05% held directly and 18.66% via a trust). It will need to find the right time to sell more, made more challenging by Nissan's financial and operational difficulties. It will also play a role in Nissan's overhaul, particularly if the Japanese company decides to sign a strategic partnership with another manufacturer. Renault opposed recent plans for a tie-up with Honda because it considered the financial terms were not generous enough.
Hindustan Times
01-08-2025
- Automotive
- Hindustan Times
Renault ends joint venture with Nissan, takes full control of Chennai plant
Renault Group has acquired Nissan 's 51 per cent stake in their joint manufacturing facility in Chennai, ending a long-standing partnership and taking full ownership of the plant. The Chennai-based facility, previously operated under Renault Nissan Automotive India Private Limited (RNAIPL), will now be solely managed and financially consolidated by Renault. While the plant will continue to produce vehicles for Nissan, Renault will now exercise full control over operations. The acquisition marks a key step in Renault's plan to develop India as a major international hub. It follows the April announcement of Renault's largest design centre outside France and the launch of the New Renault Triber, the first of four new models expected as part of a broader product rollout. However, an engineering centre jointly operated with Nissan remains active, still contributing to vehicle development for both local and export markets. Leadership and future direction Renault has announced that Stephane Deblaise will take over as CEO of its Indian operations, effective September 1, 2025. His role will involve managing the transition and overseeing product rollout in a market where the company has seen both early success and recent stagnation. Despite reaching annual sales of over 100,000 units in the past, Renault's position in India has been challenged by increased competition and changing consumer preferences. Whether full ownership of manufacturing will help reverse that trend remains to be determined. This transition comes at a time when automakers are rethinking their global strategies in response to changing consumer demands, tighter emissions regulations, and rising costs. Francois Provost, CEO of Renault Group, commented on the change, "India is a key market for Renault Group. Over the past 14 years, we have successfully established the Renault brand thanks to our dedicated teams and partners, reaching peak sales of over 100,000 vehicles sold per year. India also plays a vital role in our global R&D footprint. With full ownership of our plant in Chennai, we now have all the means to accelerate in India. Stéphane Deblaise, with his strong international experience and deep knowledge across our entire value chain, is ideally positioned to design and implement our strategy in the region." Get insights into Upcoming Cars In India, Electric Vehicles, Upcoming Bikes in India and cutting-edge technology transforming the automotive landscape. First Published Date:
Time of India
01-08-2025
- Automotive
- Time of India
What are the main issues facing new Renault CEO Provost?
Incoming Renault CEO Francois Provost will take the helm of the French automaker at a time when it is beginning to show cracks in its recent success, revising down its full year profit forecast earlier this month due to weaker sales volumes. Below are some of the challenges ahead for Provost when he takes over on Thursday: Tougher competition While Renault has been largely protected from U.S. tariffs because it does not sell in the United States, it has been indirectly hit by increased commercial pressure as European competitors looking for new markets outside the U.S. step up efforts to sell in the French firm's home region. The company reported zero growth in second quarter sales volumes, and warned of weak sales performance in June. It is also facing rising competition from Chinese entrants, both in electric vehicles and hybrids. Analysts at Barclays say Renault may have seen slower price-mix momentum in the first half of the year. The company is scheduled to report full results for the first half on Thursday. Dependency on Europe and cars With sluggish growth in Europe where Renault sells more than 70% of its cars, it needs to expand in emerging markets. It has already outlined plans to invest 3 billion euros ($3.4 billion) to launch eight new models under the Renault brand for non-European markets by 2027. It will also target developing less cyclical businesses beyond autos, such as EV charging and financial services, as part of a mid-term strategy which former CEO Luca de Meo had aimed to unveil later this year. Too small, less independent Conscious that its small size does not allow it to fund the development of electrified and autonomous vehicles, Renault has set up numerous partnerships, including with China's Geely in Korea and in combustion and hybrid engines around the world, and with Volvo Group in electric vans. However, this strategy has raised concerns among unions that the company could lose its in-house know-how and its independence. Renault, ranking only 15th in volumes globally, is frequently the subject of rumours of a tie-up with larger peer Stellantis. Partnerships with Geely also have some worried about potential leverage by China, though Renault's main shareholder, the French state, says the tie-ups do not compromise the company's ability to remain independent. A high place of launches Under de Meo, Renault launched one of the biggest product renewals in its history, with a record 10 launches and two facelifts last year. It is planning another seven launches and two facelifts in 2025, including of the Renault 4 and the Dacia Bigster, and eight more in 2026, according to sources familiar with the matter. Key to increasing market share, new launches also require significant investment in marketing and industrial fine-tuning to deliver cars on time, at the right quality. Van hoes A leader in Europe's high profit commercial vehicles market, Renault's van sales plunged by 29% in the first half due to a softer economy, and an overhaul of its models and product offering. Getting back to investment grade One of Renault's top priorities is to get its credit rating back to investment grade to attract new investors, while also boosting its market cap, currently only at 10 billion euros versus Stellantis' 23 billion euros. Renault's debt is rated Ba1 by Moody's and BB+ by S&P Global, one notch below investment grade. Nissan Since starting to rebalance its partnership with Nissan in early 2023, Renault has done three share sales, and reduced its stake in its Japanese partner to 35.7% (17.05% held directly and 18.66% via a trust). It will need to find the right time to sell more, made more challenging by Nissan's financial and operational difficulties. It will also play a role in Nissan's overhaul, particularly if the Japanese company decides to sign a strategic partnership with another manufacturer. Renault opposed recent plans for a tie-up with Honda because it considered the financial terms were not generous enough.
Int'l Business Times
31-07-2025
- Automotive
- Int'l Business Times
Renault Profits Slump As Competition Intensifies
French automaker Renault said Thursday that the tough retail and commercial van market in Europe had squeezed profits although it was able to maintain profitability better than most rivals. Excluding exceptional items Renault saw its first half net profit slump 69 percent to 461 million euros ($528 million). However it suffered 11.6 billion euros in exceptional losses due its partner Nissan, including the 9.3 billion it announced at the beginning of the month due to switching the accounting treatment of its Nissan stake so it will no longer impact its operating results. Renault rescued Nissan in 1999 and the two automakers have held stakes in one another since, in a rocky partnership that never saw them merge. Heavily indebted Nissan has hit another rough patch, posting a net loss of $4.5 billion for the financial year to March 2025 and announcing plans to cut 15 percent of its workforce. Renault has fared well in recent years thanks brining a number of new models to market under its own brand as well as that of its low-cost unit Dacia, as well as by tapping into a consumer shift to hybrid models. However Renault's heavy reliance on Europe, where the market has never fully recovered from pandemic-era drop in sales and contracted by 1.9 percent in the first half of the year, means it faces a difficult road ahead. Moreover it lost in in June the dynamic Luca de Meo as chief executive to Kering, a French luxury conglomerate that includes Gucci. He was replaced on Wednesday by Francois Provost, a long-time company veteran who has been helping execute its strategic plan. "Our first-half results, in a challenging market, were not aligned with our initial ambitions," Provost said in a statement, saying actions were already being taken to achieve the company's targets. "Nevertheless, Renault Group's profitability remains a reference in our industry, and we are determined to maintaining this standard." Renault turned in an operating margin of 6.0 percent -- down by 2.1 percentage points -- but said it hopes to raise that to 6.5 percent for the full year. Rival Stellantis -- which includes the French brands Citroen and Peugeot -- saw its margin squeezed to just 0.7 percent in the first half of this year. Volkswagen, Europe's largest carmaker saw its margin slide to 4.7 percent. Both groups are more exposed to US tariffs than Renault, which does not operate in the United States. Renault's revenue rose by 2.5 percent overall, but automotive revenue only edged 0.5 percent higher in the first half of the year. Renault's shares were down 0.4 percent in late morning trading while the CAC 40 index was 0.2 percent lower.
