Renault is not less safe for the rest of the year

After PSA and Volkswagen, Renault announced yesterday a sharp increase in first quarter turnover 2009 particularly low. Sales of motor activities reached EUR 8.6 billion in the first quarter, or 30 more than last year, bringing the total sales to 9.1 billion including the RCI Bank. As for PSA and Volkswagen, it is much better than most analysts expected. The results were fired by the rise in Dacia regime, but also by the good sales of Clio and Twingo in Europe.

Renault is not less safe for the rest of the year. The group "expects to always difficult economic conditions in 2010" and maintains its forecast of a decline of 10 of the European market this year. The automotive sector between in a decisive phase, while he lives his last months of support by the premium case, before a relapse expected in the second part of the year.

It is in this context that Carlos Ghosn should see its renewed mandate, Friday, at the General Assembly of the constructor. His arrival at the head of Renault, exactly five years ago, the manager Lebanese-Brazilian thought that this would be "the paradise compared ce relief of Nissan in 1999". Today, it now displays a less flattering review in Renault to the head of its Japanese ally, where he acquired his reputation as a "cost killer".

The "contract 2009" forgotten

While leader has maintained his position, while the Gale that blows on the sector have destabilized several competitors (PSA, Chrysler, GM) staff. But this is not because he was one of the first to announce the crisis that his group was able to avoid it. Renault-Nissan is among the leading European manufacturers that displays the losses the most important for the financial year 2009: 3.1 billion euros last year, due in part to its shareholdings in Nissan trucks Volvo and Russian AvtoVaz.

And the crisis was correct "contract 2009", ambitious programme announced in February 2006, which provided a growth in sales between 2005 and 2009 for 800,000 vehicles, with the launch of 26 models. Following two consecutive years of decline, Renault will have sold year last 224.000 units less than in 2005, despite a good breakthrough in low cost with the Dacia brand. Swept, also, the objective of operating margin of 4.5 for 2008 and 6 in 2009.

The Volvo folder

With the crisis, Carlos Ghosn took the field, by appointing two Deputy Executive Directors, Patrick Pélata Toshiyuki Shiga for Nissan and Renault, to administer shock treatment: unemployment of voluntary departures, reduction of inventory, less investment, technical...

On the front of the alliances, the successor of Louis Schweitzer has been busy: first taking stake in AvtoVaz, then a project of ultra-low cost with Indian Bajaj car, and most recently the Daimler operation, welcomed by analysts. The constructor has continued to consolidate its base in emerging markets, with the rise of its sites in Turkey, Romania and soon the implementation of a factory in the Morocco.

If this expansion in high-growth areas allows it to reduce its dependence on a few carrying European market, it has earned Carlos Ghosn a summons to the Elysee Palace to prevent Renault to produce the next version of its Clio full in Turkey.

One of the future objectives of Renault will also be to repay the aid granted by the State in the worst of the crisis. Its financial Director, Thierry Moulonguet, said yesterday encouraged by the recent increase in title Volvo AB, which would give an opportunity to Renault to convey its 20.7 stake, valued nearly EUR 4 billion. Is slightly more than the amount of the loans of the State...