Group revenues came to 40.67 b€, rising 1.8% versus 2006 on a comparable basis. In 2007, the Group’s Operating Margin rose 27% to 1.35 b€ (3.3% of revenues thanks to continued cost reductions, growth in international operations and the competitiveness of the LCV range.
Manufacturing and logistical costs declined by €137 million and general and administrative expenses were cut by €44 million.
Net profit is 2.73 b€ (1.67 b€ own profit and its share in the net income of Nissan and AB Volvo), compared with 2.96 b€ in 2006.
Renault is now better positioned to meet its 3 challenges
– Quality with warranty expenses fell 25% between 2005 and 2007
– Profitability from productivity and cut costs across the entire company
– Growth with a revamped product line-in (Clio, Twingo, Laguna) and extended to new segments (Logan Van, Sandero, Koleos, clio estate)
Renault can count on the impact of nine new product launches globally and on its expansion into the most dynamic and growing markets for auto sales in the world.
Renault therefore confirms its operating margin target of 4.5% for the year and an increase of more than 10% in Group sales compared to 2007.
The Renault-Nissan alliance now expects to become the world’s third-largest automaker behind General Motors and Ford when it completes the purchase of a 25% stake in Russia’s AvtoVAZ. The alliance sold 6.16 million vehicles last year and would gain 1 million units of capacity with AvtoVAZ. Renault- Nissan ranked fifth in worldwide vehicle sales in 2007, trailing Volkswagen (6.19 million units), Ford (6.55 million) and leaders GM and Toyota (both about 9.37 million).
