Latest news with #RenaultSA
LeMonde
5 minutes ago
- Business
- LeMonde
French culture minister and former Renault CEO will be tried for corruption
French Culture Minister Rachida Dati and former CEO of Renault-Nissan Carlos Ghosn are heading to trial. Investigating judges decided on Tuesday, July 22, after six years of proceedings initiated by a complaint from a minority shareholder of Renault SA, to refer them to a criminal court on corruption charges, a judicial source confirmed to Le Monde. Ghosn is under several international arrest warrants and is legally barred from leaving Lebanon, where he sought refuge in December 2019 after fleeing Japan, where he was incarcerated. In their order, in line with the indictment of France's National Financial Prosecutor's Office (PNF) delivered in November 2024, the judges determined that Dati should appear in court for "passive corruption and influence peddling by a person holding an elected public office within an international organization (in this case, the European Parliament)" and "concealment of abuse of power and breach of trust." As for Ghosn, he is to be tried for "abuse of power by a company executive," "breach of trust" and "active corruption and influence peddling."
Yomiuri Shimbun
4 days ago
- Automotive
- Yomiuri Shimbun
Nissan Plant ‘Closures': Break away from Negative Cycle and Step up Alliance Strategy
Nissan Motor Co., which has been restructuring its operations, has decided on large-scale closures of its domestic plants for the first time in a quarter of a century. The company should minimize the impact on the local economy around the plants and at the same time hasten a strategy to seek a new alliance partner. Nissan has announced that it will end compact car production at its Oppama plant in Yokosuka, Kanagawa Prefecture, at the end of fiscal 2027. This will effectively be a plant closure. Production of commercial vehicles at a subsidiary's plant in Hiratsuka in the same prefecture will also end in fiscal 2026. Nissan posted a ¥670.8 billion net loss for the fiscal year ending March 31, 2025, due to sluggish global sales. In May, when it announced its financial results, Nissan said it would close seven of its 17 vehicle production plants worldwide. The closure of the Kanagawa Prefecture plants is a part of such efforts. The Oppama plant, which began operations in 1961, is a symbol of Nissan's history, having produced its models including the 'March' and 'Bluebird.' There are said to be about 2,000 companies that do business with Nissan in the prefecture, and the impact on the local community will be significant. It is hoped that Nissan, in close cooperation with local governments and other entities, will take detailed and meticulous measures to alleviate concerns over its restructuring plan, such as by helping employees find new jobs at its business-partner companies and helping small and midsize enterprises procure funds. As a result of this restructuring, Nissan's domestic vehicle production plants will be consolidated into a total of three locations, one in Tochigi Prefecture and the other two in Fukuoka Prefecture. The management team needs to work to rebuild its business so that further restructuring will never occur. In recent years, Nissan's management has fallen into a negative cycle of declining brand power and development capabilities, and sluggish sales. Under its 'Revival Plan,' the large-scale restructuring measures launched by former President Carlos Ghosn in 1999, Nissan achieved a V-shaped recovery in business performance. The company then formed an alliance with France's Renault SA and Mitsubishi Motors Corp. that leapt to become the world's second-largest automotive alliance in the 2010s. However, as a result of pursuing an increase in sales with an unreasonable expansion policy, Nissan's product quality and development capabilities declined. Its brand power also deteriorated through its low-margin, high-volume business approach. It is now said that Nissan has no 'well-selling models' to attract consumers. The company's leadership should reflect sincerely on the chaotic management of the past. Its business will not stabilize unless Nissan proceeds with strengthening its product development capabilities, as well as making thorough efforts to 'stop the bleeding.' The most important issue going forward will be to find a new alliance partner. As the capital relationship with Renault has been drastically reviewed, ties between Nissan and Renault have weakened. The development of electric vehicles and next-generation vehicles, among other products, which will be Nissan's main battleground in the future, will require massive investment. It will be difficult for Nissan to survive on its own. Automobile tariffs imposed by the administration of U.S. President Donald Trump will also be a burden. The hope is that Nissan will look for a wide range of partners, including Honda Motor Co., with which negotiations for a business merger have broken down. (From The Yomiuri Shimbun, July 18, 2025)
Yahoo
5 days ago
- Automotive
- Yahoo
Renault SA (RNLSY) Q2 2025 Earnings Call Highlights: Navigating Challenges with Strategic ...
Group Revenue: EUR27.6 billion, up 2.5% from the previous period. Operating Margin: 6% of group revenues, below the consensus of 6.9%. Free Cash Flow: EUR47 million, impacted by a negative change in working capital of approximately minus EUR900 million. Inventory Levels: 530,000 units as of June 30, down from 560,000 units at the end of March. Factory Utilization Rate: Around 90% on average. Warning! GuruFocus has detected 1 Warning Sign with RNLSY. Release Date: July 15, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Positive Points Renault SA (RNLSY) reported a group revenue of EUR27.6 billion, slightly above market consensus. The company maintains a strong order book in Europe, with two months of forward sales. Renault SA (RNLSY) has a high factory utilization rate, averaging around 90%. The company plans to launch seven new models and two facelifts in 2025, targeting both European and international markets. Renault SA (RNLSY) is implementing immediate short-term cost reduction measures and accelerating its cost reduction plan. Negative Points Operating margin for the first half was 6%, below the market consensus of 6.9%. Free cash flow stood at EUR47 million, significantly below the consensus of EUR645 million. The company experienced a negative change in working capital requirement estimated at around minus EUR900 million. Renault SA (RNLSY) faced lower-than-anticipated performance in June due to declining retail market and underperformance in the LCV business. The company has downgraded its full-year 2025 operating margin target to around 6.5%, down from the previous expectation of higher than 7%. Q & A Highlights Q: Can you explain the weaker free cash generation in the first half and any structural market changes in the last two months? What actions are you taking to meet the free cash flow guidance for the year? A: The weaker free cash generation was due to lower-than-expected volumes in June, increased commercial pressure, and a significant decline in the LCV market. Additionally, invoicing timing issues left more receivables on the balance sheet. Structurally, the retail market across Europe has been slow, with increased competitive pressure. For the second half, we expect to recover most of the EUR900 million negative working capital, maintain controlled inventories, and leverage a strong order book to secure free cash flow targets. Q: Can you elaborate on the increased commercial pressure towards the end of June? Was it specific to certain countries or segments? A: The increased commercial pressure was generally across Europe, particularly in France, where the retail market was down. Renault has a stronger market share in retail segments, which affected us more. The LCV market remained weak, but we expect improvement in the second half with new launches and cost reductions. Despite missing targets, we maintain a positive outlook with an operating margin around 6.5% for the full year. Q: Was the weaker retail performance specific to any country, and do you expect a recovery in France in the second half? A: We do not anticipate an improvement in the retail market in France. The expected improvement will primarily come from the LCV segment and new launches in the second half of the year. Q: What are the key elements for delivering in the second half, given the current challenges? A: Key elements include managing inventories close to target levels, leveraging a strong order book, launching new products, and implementing cost reductions. These factors should help us achieve a positive dynamic in the second half and meet our cash generation targets. Q: How do you view the profitability of EVs in the current market environment? A: While the profitability of EVs is not yet at the desired level, we are focusing on improving this through new launches and cost efficiencies. The overall strategy remains centered on maintaining a strong operating margin and generating cash flow. For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Bloomberg
15-07-2025
- Automotive
- Bloomberg
Renault Cuts Margin Outlook, Names CFO Minto Interim CEO
By and Albertina Torsoli Updated on Save Renault SA lowered its profitability outlook for the year and named its finance chief Duncan Minto its interim chief executive officer to continue the French automaker's turnaround. Minto is taking over from Luca de Meo, who is leaving for Gucci owner Kering SA. The automaker cut its operating margin guidance to around 6.5% for 2025, from at least 7% previously, due to intensifying competition and declines in the automotive market.
Bloomberg
01-07-2025
- Automotive
- Bloomberg
Renault Takes $11 Billion Non-Cash Loss in Nissan Account Change
Renault SA will recognize an estimated €9.5 billion ($11.2 billion) non-cash loss after changing the way it accounts for its stake in ailing Japanese carmaker Nissan Motor Co. The new accounting method — which will align the value of the stake with Nissan's share price — has no cash impact and won't affect the calculation of Renault's dividend, the French automaker said Tuesday. Nissan's shares have slumped 38% in the 12 months.
