by Gilles Guillaume

PARIS (Reuters) – Renault announced on Thursday an upward revision of its financial targets for the current year thanks in particular to demand for its new family models, the Austral SUV and the Dacia Jogger station wagon in the lead.

The diamond group, which has been engaged for several years in a profound restructuring and a strategic repositioning to restore its margins, is now aiming for an operating margin of between 7% and 8% for 2023, against a previous objective of more than 6%.

“This revision is mainly explained by the quality of the sales mix (of) in connection with the success of the new launches and the continuation of the commercial policy focused on value,” the French automaker said in a press release.

Renault is also counting on an operating free cash flow from the automotive industry greater than or equal to 2.5 billion euros this year, against a previous target greater than or equal to two billion euros.

Outpaced so far by several other automotive groups, notably its compatriot PSA – today Stellantis – which consistently posts a double-digit margin, Renault has refocused on its most profitable markets and models, particularly on the size segment. intermediate.

“This product offensive (…) unprecedented in the history of the group (…) has only just begun and will further improve the group’s performance,” said CEO Luca de Meo quoted in the press release.

Renault will publish its half-year results on July 27 which, according to him, should translate into an operating margin of more than 7% and an automotive operational free cash flow of around 1.5 billion, a forecast which includes 600 million euros. euros in dividends from the financing subsidiary Mobilize Financial Services.

The coming years will be marked by other major launches such as the Rafale coupé, the electric Renault 5 and Alpine A290 or the Dacia Bigster SUV, big brother of the Duster, one of the group’s bestsellers.

To modernize its image and get back into the electrification race, Renault has also announced the creation of an entity dedicated to electrics and software, and open to external partners.

Nissan is to take a stake of up to 15%, but the final agreements on the restructuring of the alliance have not yet been signed, Renault’s Japanese partner having been agitated at its summit by a power battle and persistent divisions on the interest of an investment in this “Ampère” entity of Renault.

(Gilles Guillaume report, edited by Jean Terzian)

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