Renault Investors Like The Future With The Help Of Nissan.
Mitsubishi, AvtoVAZ Will Contribute Too.
Renault investors, breathing a sigh of relief after the French presidential election result, are getting excited about prospects for the alliance with Nissan, and contributions from newly acquired Mitsubishi, and Russian AvtoVAZ.
Barclays Equity Research expects Renault’s relationship with Nissan to reach a new level in the autumn when CEO Carlos Ghosn presents the new long-term strategy.
“We expect (Ghosn) to unveil collaborations never before seen in the industry on three critical areas – platforms, power-trains – especially hybrids and EVs. Financially, Renault has already indicated targets of €70 billion in revenues and a 7 per cent margin by 2020, but we expect these to be topped by 2020,” Barclays analyst Alexis Albert said.
Evercore ISI said the election of centrist Emmanuel Macron to the presidency was a positive for Renault. Nationalist candidate Marine Le Pen had proposed an increase in border tariffs and labour protections, “with intention to implement Trump-like repatriation of French motor manufacturing”.
Despite reports that Macron was against selling off the government’s 14 per cent stake in Renault, Evercore ISI there was now a greater chance of a sale of at least part of the stake to fund his pledge to raise €10 billion to promote industrial and research projects.
“We see any government sale as a positive for Renault, as it removes the barrier to a more efficient and balanced holding with Nissan,” said Evercore ISI analyst Arndt Ellinghorst.
Renault owns 44 per cent of Nissan, and Nissan owns 15 per cent of Renault.
More good news for Renault came in mid-May when it announced 90 per cent of its factories were operating normally, 5 days after it halted production because of the global cyber attack.