Renault reports positive sales figures

2011 has been a mixed year so far for the automotive industry, some months sales figures are up whilst other months’ sales figures show negative growth. The worst hit appear to be premium car manufacturers, mass volume producers such as Renault and Ford appear to be less affected this year. Renault has reported some positive year to date figures, helping to boost the financial outlook of the French manufacturer. According to the latest figures released by Renault, it saw a net income of €1,253 million, up 52% and positive automotive operational free cash flow of €121 million. The figures also state that Renault sold 1.4 million cars in the first half of this year, up 1.9% on last year. This 1.9% increase on sold units is quite an achievement considering that for the first half of last year the government backed scrappage scheme was still in play in the UK. Analysing the results, Carlos Ghosn said, “The sales record in the first half confirms the Group’s strong potential for international growth. The financial results were impacted by external events, including supply constraints, which will subside in the second half, and a considerable increase in the cost of raw materials. In this context, the Group confirms its objective of operational free cash flow above €500 million for 2011.” The Group’s market share in France was negatively impacted in the first quarter of 2011 by a shortage of vehicles; the affects of this were felt at Renault Basingstoke. This effect was worsened, in the second quarter, by supply issues following the tsunami in Japan.