Auto giant Renault incurred a net loss of 1.3 euros, equivalent to 13 billion Norwegian kroner, in the first half of the year due to the closure of its operations in Russia. In turn, the company upgraded its 2022 forecast due to improved profitability elsewhere, according to Reuters.
Renault, which had the most exposure to the Russian car market to Western automakers, sold its largest stake in AvtoVAZ, Russia’s largest automaker, in May for a nominal amount.
Otherwise, Renault has announced that its new strategy, of focusing on selling fewer but more profitable cars, is paying off.
Operating margins in the first half of the year were 4.7 percent, compared to 2.1 percent in the same period last year. Forecasts for the full year were revised up to more than 5 percent.
“Despite all the headwinds related to the shutdown in Russia, semiconductor shortages and cost growth, the group continues to improve operating results,” said Luca de Meo, Renault CEO.
Renault, which also makes cars under the Dacia brand and has an alliance with Nissan, is in the early stages of restructuring its business to be more competitive in its transition to electric vehicles.
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