(BFM Stock Exchange) – The manufacturer in the diamond published a turnover down 0.3% in the first quarter, slightly lower than the consensus. Invoking “an uncertain macroeconomic environment”, its financial director Duncan Minto announced that the company would “take additional cost reductions”.

While the ball of publications of the first quarter is in full swing, Renault in turn enters the dance.

The diamond manufacturer delivered its turnover of the first quarter. From January to March, the automotive group has released revenues of 11.68 billion euros, down 0.3% over one year. Excluding exchange effects, turnover increases by 0.6%.

In the automotive division, revenues reached 10.13 billion euros with a decline by 3% over one year in published data and down 2.2% excluding exchange effects.

The volumes had a negative impact of 2.6 percentage points on the variation in turnover, due to destocking made by the dealers of the company. Prices have generated a positive effect up to 0.5 points.

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The new launches support the dynamics

The “mix” produced, that is to say the orientation of sales to more expensive vehicles, was positive, with an impact of 3.7 points. The group benefited from its recent launches, including the Renault 5, its 100% electric city car, marketed at the end of last year and elected car of the year in Europe, in January. “The product mix will continue to be engine in the coming quarters,” said Renault.

Sales to partners have had a negative effect of 3.5 points, Renault evoking a high comparison base and the deconstation of “Horse”. This joint venture between Geely, Saudi Aramco and the French group produces engines for partners. However, Renault has not include the income of this company in its accounts since May 2024.

Mobilizes Financial Services, the group’s financial services division, it has increased income up 22.3% to 1.52 billion euros.

Ultimately, Renault published an activity slightly lower than expectations in the first quarter. According to a consensus provided by the company, analysts awaited total stable income over one year at 11.7 billion euros. The design offices also anticipated a 1.7% drop in automotive turnover and 14.1% growth in financial services.

CO2 cost and emissions

At the end of this publication, Renault’s financial director Duncan Minto announced that the company would further reduce its costs.

“In an unstable macroeconomic environment, Renault Group has decided to proactively initiate additional cost reduction measures,” said the manager, in a veiled reference to customs duties envisaged by the Trump administration.

Renault has the advantage compared to its European competitors not to be present directly in the United States and therefore not to be exposed to the impact of American customs duties. But, as Bernstein recently pointed out, the French manufacturer would not be spared by “a generalized collapse of the markets”.

Renault has also confirmed its prospects for 2025, tabling on an operating margin of at least 7% and a free cash flow of at least 2 billion euros.

The margin target incorporates an unfavorable impact of 1 percentage point linked to CAFE regulation. This European regulation has drastically lowered CO2 emissions ceilings for manufacturers, which pushes them to sell more electric and hybrid vehicles to the detriment of thermal engines.

According to Bank of America, the reference target is 94 grams of CO2 per kilometer, against 110 grams in 2021. This new target was described as “painful and perhaps unattainable” by the American bank.

Aware of the difficulties that the manufacturers could encounter, the European Commission proposed in March softening on this regulation, with in particular the possibility of calculating the emissions over three years. But this measure must still be approved by other European bodies.