A 6.4% H1 2019 decline in revenues and 11.8% dip in operating profit during the first half of the year have prompted Renault to cut its sales targets for the full year.
The French car manufacturer’s total revenues in the period to June 30 slipped to €28.1 billion as its operation profit declined to €1.5bn.
Falling sales in France, Argentina and Turkey, along with the decline of diesel sales and the poor performance of Alliance partner Nissan, which buys some engines from Renault, were all cited among causes for the decline.
As a result, the group said that it “now expects 2019 revenues to be close to last year’s” rather than the growth previously predicted.
However, Renault maintained its 6% operating margin and said that new models – including the all-new Clio – will help it overcome further slowdowns in the global car market in the second half of the year.
Renault chief executive, Thierry Bolloré, said: "In a tougher than expected environment, the Group stayed its course and achieved a level of performance in-line with its expectations for the first part of the year. The launches of many new models, enhanced competitiveness and the teams’ fighting spirit allow the Group to confirm its profitability objectives for the full year.”
Renault’s faltering performance came in a week of mixed fortunes for car manufacturers as many revealed their H1 financial results.
While PSA celebrated alongside Volkswagen Group as both brands achieved growth in revenue and profit, Aston Martin suffered a slump in its share price after slashing its full-year sales targets, Daimler issued a further profit warning and Nissan announced 12,500 global job cuts as part of its plans to cut costs following a poor H1.
Jaguar Land Rover also slipped to a £395 million loss in the quarter to June 30.