On July 30, Renault Group officially released its financial results for the first half of the year. Renault said that although the shortage of semiconductor chips has intensified and the cost of raw materials has risen, it is expected that the company will still achieve profitability throughout 2021.

　　(Image source: Renault)

　　Specifically, in the first half of this year, the Renault Group delivered a total of 1.42 million vehicles worldwide, an increase of 18.7% year-on-year; thanks to the soaring car sales, group revenue rose 26.8% year-on-year to 23.357 billion euros; benefited from the company Renaulution, the company’s profitability plan, has improved the company’s profitability. In the first half of the year, Renault achieved an operating profit of 654 million US dollars, while a loss of 1.203 billion euros in the same period last year; operating profit margin increased from -6.5% in the same period last year to 2.8%; net profit Reached 368 million euros, while a loss of nearly 7.3 billion euros due to the suspension of production during the same period last year.

　　It is also worth mentioning that the free cash flow of Renault's automotive business in the first half of the year was close to equilibrium, compared with a negative 6.4 billion euros in the same period last year. Despite the impact of the new crown epidemic and chip shortages, automobile operating profits (including AVTOVAZ) increased by more than 1.7 billion euros compared with the same period last year. As of June 30, 2021, the net debt of the automotive business has been reduced by 800 million euros, and the liquidity has reached 16.7 billion euros.

　　Renault Group CEO Luca de Meo said in a statement, “I think the worst has passed and our core automotive business has resumed profitability. The above performance only marks the first step in our transformation. The Group has launched a series of new cars, and this transformation is expected to accelerate."

　　Last month, Renault announced a more ambitious electric vehicle strategy, which will launch new affordable electric models based on its previous iconic small cars in order to catch up with competitors such as Volkswagen in the fast-growing electric vehicle market. Renault also stated that by 2030, the Renault-Nissan-Mitsubishi alliance will produce 1 million electric vehicles globally, up from 200,000 in 2020.

　　While accelerating the electrification offensive, Renault also plans to cut costs by about 2 billion euros. It has already cut 1.8 billion euros and is expected to reach the target before the end of the year, ahead of the original plan.

　　In the Chinese market, within the framework of the Renault Group’s Renaulution innovation strategy, the Renault Group will reshape its business model in China, while leveraging China’s competitive industrial ecosystem to develop new mobility solutions for the Chinese and global markets.

　　Regarding the lack of cores, Renault currently expects to lose 200,000 car production this year, which is higher than the 100,000 previously predicted. Nevertheless, Renault expects that the profit margin for the whole year will reach the same level as in the first half of the year, slightly lower than its target of 3% set for 2023. In addition, in response to environmental challenges, the Renault Group plans to achieve carbon neutrality in Europe by 2040 and has confirmed that it will achieve its "Company Average Fuel Economy" (CAFE) target in 2021.

　　This article is reproduced from Gasgoo.com