Automotive News Europe — 2024-04-08
Automotive Industry
Renault shares are up 37% in 2024 as CEO Luca de Meo returns the automaker to profit.
Renault has leapfrogged Nissan in market value as investors rewarded the French automaker for moves including loosening ties with the struggling Japanese partner.
Renault shares are up 37% in 2024 as CEO Luca de Meo returns the manufacturer to profit and overhauls its lineup.
After trailing Nissan for almost the entirety of their decades-long alliance, Renault is now valued at €15 bn ($16 bn), trumping the partner by around $1 bn.
Renault "continues to improve its margins and free cash flow thanks to flawless execution," said Stifel analyst Pierre-Yves Quemener.
Under de Meo, Renault pulled out of Russia, separated its EV and combustion-engine businesses and brokered new partnerships including with Qualcomm, Volvo trucks and China's Geely.
De Meo is introducing electric models such as the €25,000 R5 E-Tech, which is meant to win over buyers amid tough competition on EVs in Europe. Renault is the best-performing auto stock in the region in 2024.
Nissan, meanwhile, is struggling due to its aging product line, a lack of hybrid options in North America and intensifying competition in China.
Renault in 2023 started loosening ties with its longtime partner after their alliance soured in recent years. The French company sold an initial tranche of Nissan shares late 2023 and another 2.5% holding at the end of March 2024, sooner than analysts expected.