|Bid||0.00 x 0|
|Ask||0.00 x 0|
|Day's range||22.85 - 23.13|
|52-week range||17.17 - 25.02|
|Beta (3Y monthly)||N/A|
|PE ratio (TTM)||6.76|
|Earnings date||24 Jul 2019|
|Forward dividend & yield||N/A (N/A)|
|1y target est||24.75|
(Bloomberg Opinion) -- During the past 12 months Renault SA has looked more like a soap opera than a carmaker. The French company served up an ill-tempered denouement on Friday when it sacked Chief Executive Officer Thierry Bollore, who said he was the victim of a “coup.”Bollore only took the job in January after his predecessor Carlos Ghosn was arrested for alleged impropriety around his pay and resigned. Since then, Renault’s alliance with Japan’s Nissan Motor Co. has been in turmoil and the French company’s cash flow and share price have skidded.Renault compounded the dramatics earlier this by trying to merge with Fiat Chrysler Automobiles NV, only for the French state to torpedo the union.These events have created a profound sense of drift at the manufacturer, for which Bollore and his chairman Jean-Dominique Senard are probably equally to blame. It’s Bollore who’s been given the shove, though, and Renault now has (yet another) opportunity to start afresh. Clotilde Delbos, the finance director, has been appointed interim CEO while the company looks for a permanent replacement.The first priority must be to tone down the histrionics. As at Nissan, which appointed a new CEO this week, Renault needs to focus on operational matters, not creating newspaper headlines. Boardroom bust-ups are never helpful but this one is especially ill-timed. Car markets are weakening and anti-pollution regulations and the shift to electric vehicles require heavy spending.Unfortunately Renault isn’t starting out from a position of strength. It is reasonably well positioned in electric vehicles (with the Zoe) and in emerging markets such as Brazil and Russia. Its low-cost Dacia business performs well. However, Renault can no longer rely on chunky profit contributions and dividends from Nissan because its Japanese partner is also battling slumping sales. Renault’s balance sheet isn’t the strongest: the group had just 1.5 billion euros ($1.65 billion) of industrial net cash at the end of June And its core automotive business eked out a meager 4 percent operating return on sales in the first six months of the year. Its local rival Peugeot SA achieved twice that. Overall, net income will probably fall by about one-quarter this year. Looking ahead, Renault targets 70 billion euros in yearly revenue by 2022, about one-fifth higher than last year. Yet with car demand plateauing it’s unlikely to get anywhere near that. Sales will rise only slightly to about 59 billion euros in 2021, according to analysts polled by Bloomberg.Fresh leadership at Renault and Nissan might at least help the two partners work more harmoniously. Then perhaps Senard and Fiat’s scion John Elkann can start talking again about a merger (Nissan wasn’t happy about the lack of consultation on the idea). But in view of the bad blood and false starts of the past 12 months, neither seems likely in the short term. Renault doesn’t need another distraction.The company’s shares jumped 4 percent on Friday but Renault shareholders remain pretty downbeat. Subtract the value of Renault’s 43% stake in Nissan, its stake in Germany’s Daimler AG and its net cash, and you’ll see they ascribe only about 2.5 billion euros of value to the core business.Bollore claims he’s been treated shabbily, but his successor inherits a lousy valuation, a trunk full of strategic problems and a chairman and French state stakeholder second-guessing their every move. His departure feels like an act of mercy.To contact the author of this story: Chris Bryant at email@example.comTo contact the editor responsible for this story: James Boxell at firstname.lastname@example.orgThis column does not necessarily reflect the opinion of the editorial board or Bloomberg LP and its owners.Chris Bryant is a Bloomberg Opinion columnist covering industrial companies. He previously worked for the Financial Times.For more articles like this, please visit us at bloomberg.com/opinion©2019 Bloomberg L.P.
EDF will take concrete action to remedy a string of technical problems, delays and cost overruns at its nuclear plants, its CEO said on Tuesday after coming under heavy criticism from the French finance minister over the weekend. In unusually tart comments, Finance Minister Bruno Le Maire had said that the government could no longer accept how 84% state-owned EDF's costs keep "drifting, month after month, year after year".
A month before Britain is due to quit the European Union, the bloc's car-makers have joined forces to warn of billions of euros in losses in the event of a no-deal Brexit with production stoppages costing 50,000 pounds a minute in Britain alone. Britain is scheduled to quit the EU on October 31 but businesses have grown increasingly concerned at Prime Minister Boris Johnson's apparent lack of progress towards a new withdrawal deal to replace the proposals of his predecessor Theresa May, which the British parliament rejected three times. In a statement, groups including the European Automobile Manufacturers' Association, the European Association of Automotive Suppliers and 17 national groups warned of the impact of "no-deal" on an industry which employs 13.8 million people in the European Union including Britain, or 6.1% of the workforce.
PARIS/FRANKFURT, Sept 10 (Reuters) - Time is running out for European carmakers, which have waited until the last minute to try to meet ambitious EU emissions targets and face billions in fines if they fail to comply. Manufacturers from PSA Group to Volkswagen are using this week's Frankfurt auto show to reveal the new models and strategies they hope can slash carbon dioxide emissions within months. By next year, CO2 must be cut to 95 grammes per kilometre for 95% of cars from the current 120.5g average - a figure that has risen of late as consumers spurn fuel-efficient diesels and embrace SUVs.
Britain should delay Brexit beyond Oct. 31 rather than leave the European Union without a deal, which would be particularly harmful to large carmakers, the head of the sector's industry body told Reuters on Friday. As Britain spins towards an election, Brexit remains up in the air more than three years after Britons voted to leave the world's biggest trading bloc in a 2016 referendum leading to the country's biggest political crisis in decades. The autos sector, the country's biggest exporter of goods, has been one of the most vocal opponents of a no-deal Brexit, warning that production would be hit with tariffs, border delays and new bureaucracy, ruining the viability of many plants.
Peugeot automaker PSA Group and its Chinese partner Dongfeng Group have hammered out a plan to restructure their joint venture operations, slashing costs in the short term and aiming to boost annual sales to 400,000 vehicles by 2025, PSA said on Thursday. Dongfeng Peugeot Citroen Automobiles (DPCA), the joint venture based in Wuhan, central China, plans to reduce the break-even point to below 180,000 vehicles in 2019 and further reduce to below 150,000 vehicles between 2020 and 2021, according to a post on PSA's social media account in China.
If you want to know who really controls Peugeot S.A. (EPA:UG), then you'll have to look at the makeup of its share...
BEIJING/PARIS (Reuters) - Peugeot maker PSA Group and partner Dongfeng Group have agreed to cut thousands of jobs in China and drop two of their four shared assembly plants, according to a document seen by Reuters, in a last-ditch bid to curb mounting losses as the world's largest auto market loses steam. Dongfeng Peugeot Citroen Automobiles (DPCA), the carmakers' joint venture based in Wuhan, central China, will halve its workforce to 4,000 as it closes one plant and sells another under plans agreed last month between PSA boss Carlos Tavares and Dongfeng Chairman Zhu Yanfeng, the document showed.
(Bloomberg Opinion) -- France SA’s romance with the Chinese car industry could be nearing its end.Dongfeng Motor Corp., a state-owned giant that runs joint ventures with PSA Group, Nissan Motor Co. and Honda Motor Co., is looking at options for its 12.2% stake in PSA including a sale or bond issuance backed by the stock, people familiar with the matter told Bloomberg News on Thursday.On purely financial terms, such a move makes a great deal of sense. Dongfeng bought the shares as part of a 2014 bailout of the maker of Peugeot and Citroen cars, brokered by the French government. That investment has done rather well: PSA has seen the third-best share performance in Bloomberg’s Global Automobile Valuation peer group over the past five years, after Geely Automobile Holdings Ltd. and Fiat Chrysler Automobiles NV. The 800 million euros ($897 million) Dongfeng spent at the time is now worth around 2.2 billion euros. On top of that, the operational ventures that underpinned the shareholding have seen better days. Listed subsidiary Dongfeng Motor Group Co.’s sales of Peugeot- and Citroen-branded cars fell by about half in the first six months from a year earlier and are running at less than a quarter of their level in 2015. In the key crossover SUV market, models like Citroen’s C5 Aircross and Peugeot’s 4008 have simply failed to catch fire against competition from Asian and domestic rivals.Unless there’s a serious pick-up in the second half, Dongfeng’s PSA production lines, dedicated to turning out as many as 600,000 vehicles a year, will be running at little better than 25% utilization – levels at which it should be hard for the business to make money. Losses at Dongfeng’s PSA venture were already running at the equivalent of $251 million in 2018; it would hardly be surprising if they were worse this year.Management in China clearly see little sign that sales are about to pick up. Dongfeng’s dealer network for PSA-branded cars shrank by almost 80% between 2015 and 2018, and now stands at just 666 outlets compared with 1,186 for Renault-Nissan marques. The showrooms that remain suffer low productivity, shifting an average of 400 PSA vehicles each in 2018 compared with 1,431 at Nissan outlets and 761 at Honda-branded locations. (For what it’s worth, Renault does even worse, on just 204 vehicles).There’s a more proximate issue, too. Cash has been looking a little tight for Dongfeng’s listed subsidiary of late, owing largely to a huge increase in working capital, two years of negative Ebit, and net debt of 2.15 billion euros that was running at 8.1 times Ebitda at the end of December. In the 2018 fiscal year, operating cash flows actually turned negative to the tune of about 1.25 billion euros, a relatively rare event for carmakers that aren’t in the grip of a financial crisis or corporate scandal.Dongfeng still has ample liquidity. Its ratio of short-term assets to short-term liabilities was 1.36 at the end of December, above the industry average. But China’s auto market is grim, with sales declining from a year earlier for 12 straight months even as the government ratchets up pressure to spend money on the switch to electric vehicles. Faced with such headwinds, 2.2 billion euros could come in handy.At present there’s no word that Dongfeng is planning to unwind the JV to manufacture PSA cars in China – but it would probably welcome such an outcome, especially if it could persuade its European affiliate to pay to take more control of the partnership in the manner of the deal last year between BMW AG and Brilliance China Automotive Holdings Ltd.Dongfeng’s partnerships with Nissan and Honda are clearly the better performers, and PSA may feel it needs more of a free hand to turn around its Chinese operation. If a sale of a strategic stake can help ease the path toward that happier outcome, both sides stand to benefit.To contact the author of this story: David Fickling at email@example.comTo contact the editor responsible for this story: Matthew Brooker at firstname.lastname@example.orgThis column does not necessarily reflect the opinion of the editorial board or Bloomberg LP and its owners.David Fickling is a Bloomberg Opinion columnist covering commodities, as well as industrial and consumer companies. He has been a reporter for Bloomberg News, Dow Jones, the Wall Street Journal, the Financial Times and the Guardian.For more articles like this, please visit us at bloomberg.com/opinion©2019 Bloomberg L.P.
Britain bought the fewest new cars since 2012 last month, an auto industry body said, blaming political and economic uncertainty as well as consumers' uncertainty about future environmental regulation. New car registrations in July dropped 4.1% year-on-year to 157,198, the lowest number for the month since 2012, while sales for the year to date were 3.5% lower at just over 1.4 million, the Society of Motor Manufacturers and Traders said. Sales of diesel-powered cars were down by more than a fifth, while petrol car volumes were stable and electric car sales were up strongly from a low base.
(Bloomberg Opinion) -- Boris Johnson has been the U.K.’s leader for only a week, but he and his “Brexit war cabinet” have achieved one milestone already: The pound has slumped to its lowest level against the U.S. dollar and the euro since 2017.The cause is Britain’s newfound eagerness to up the ante in its negotiations with the European Union, with Johnson refusing to even meet with EU leaders until they scrap the terms of his predecessor Theresa May’s Brexit deal. His “do-or-die” hardball strategy has been gleefully parroted by ministers such as the foreign secretary Dominic Raab, who say leaving without a deal would be an even better way to squeeze a trade deal out of “stubborn” Brussels and prove the naysayers wrong.In more normal times, the sight of a currency selloff greeting a new Conservative government – led by someone who promised to be the “most pro-business prime minister” in history – might lead to a rethink. But we know Johnson doesn’t worry much about big market moves: “The pound goes up, the pound goes down,” he once said.We also know that some Brexiters see weak sterling as a good thing. The former Brexit Secretary David Davis said back in February that forecasts of a 20% currency fall in the event of no deal were something to cheer: “Our goods will become 20% more competitive on the global market.” Robert Halfon, a Conservative member of Parliament, added this week that “hopefully holidaymakers will choose GB as a holiday destination.”There’s a dangerous and deceptive optimism at work here. Beyond the usual dismissal of any criticism of Brexit as “Project Fear,” there’s clearly a belief among some that threatening no deal is kind of a free hit: It can depreciate the pound, boost British exports and heap pressure on Brussels in one swoop. This is playing with fire.While it’s true that the trade-weighted sterling fall of 15% since the referendum means a theoretical knock-on effect on goods export prices, that might matter less than the Brexiters think. Johnson and Raab need to reflect more carefully on the chief reason investors are dumping the pound: The anticipated negative impact of breaking from the EU (something that gets worse the harder the prospective rupture looks). And this impact almost certainly means a less attractive and more costly environment for exporters, whether that’s via new tariffs, regulatory barriers or lower productivity growth.So rather than merely inciting companies to invest more in the U.K. and export to the world, the currency drop also signals the risks of doing so. That’s why U.K. business investment is lagging the G7, according to Bloomberg Intelligence, while data from EY shows more foreign investment projects are being delayed.Instead of dismissing businesses’ fears of a no-deal Brexit as “unbalanced,” Raab should listen to CEOs such as Carlos Tavares of Peugeot SA. In an FT interview, Tavares said he might have to pull production from the carmaker’s Cheshire plant and shift it to the continent if the post-Brexit economics didn’t work. The site exports most of its output to Europe and imports most of its parts; what Tavares wants isn’t a weaker pound but the visibility on customs charges that a no-deal scenario doesn’t give him. Try telling a carmaker it should cheer a depressed sterling when EU car import tariffs are 10% and a single component can cross the English Channel three times.As Tavares can attest, imports are an equally important part of the trade picture. Yet the more Panglossian Brexiters are ignoring the fact that a weakening currency makes them pricier. And this isn’t just about protecting parts-importing manufacturers. Britain sources half of what it eats from abroad, so it’s a little unwise politically to dismiss the threat.The U.K.’s risk of runaway inflation is pretty low right now, judging by Bank of England data and market forecasts, but we’ve seen bouts of consumer price rises since the referendum. The country’s real household disposable income has shrunk an estimated 0.3 percent on average between 2016 and 2019, according to the Resolution Foundation. Brexit is already making the U.K. worse off. The falling pound won’t help.To contact the author of this story: Lionel Laurent at email@example.comTo contact the editor responsible for this story: James Boxell at firstname.lastname@example.orgThis column does not necessarily reflect the opinion of the editorial board or Bloomberg LP and its owners.Lionel Laurent is a Bloomberg Opinion columnist covering Brussels. He previously worked at Reuters and Forbes.For more articles like this, please visit us at bloomberg.com/opinion©2019 Bloomberg L.P.
British Prime Minister Boris Johnson has told EU leaders he will sit down for Brexit talks when they indicate that they are ready to shift position on the divorce deal, otherwise Britain will prepare for leaving without an agreement, his spokeswoman said. "The PM has been setting out to European leaders the position ... that the Withdrawal Agreement with the backstop has not been able to pass parliament on the three occasions it was put in front of parliament. "The prime minister would be happy to sit down when that position changes.
Volkswagen Group shares rose 2% after the carmaker posted a 30% rise in second-quarter operating profit despite a drop in vehicle sales as rising demand for sports utility vehicles and premium brands boosted margins. Volkswagen bucked a trend of falling demand for passenger cars by launching a range of higher-margin sports utility vehicles at a time when demand for sedans is falling.
* European shares dip from 2-week highs, STOXX down 0.2% * Euro zone business growth stalls in July, outlook darkens * Earnings in focus in Europe and U.S. ahead of ECB meeting * Deutsche Bank posts 3.15 bln euro Q2 loss, shares fall * Chips rally after ASMI, Texas Instruments results * Signs of progress in trade talks support Asian shares Welcome to the home for real-time coverage of European equity markets brought to you by Reuters stocks reporters and anchored today by Danilo Masoni. Consensus is for the ECB to cut its deposit rate in September and while today's data may not be enough for immediate action it will surely give more ammunition to the doves. Vailati says he still expects a rate cut along with a relaunch of QE in September when the ECB is due to update its macro forecasts.
* European shares open little changed * Earnings in focus in Europe and U.S. * Deutsche Bank posts 3.15 bln euro Q2 loss, shares fall * Eyes on PMIs ahead of tomorrow's ECB meeting * Signs of progress in trade talks support Asian shares * Chips rally after ASMI, Texas Instruments results Welcome to the home for real-time coverage of European equity markets brought to you by Reuters stocks reporters and anchored today by Danilo Masoni. Reach him on Messenger to share your thoughts on market moves: email@example.com STOXX STEADY, DB DOWN, ASMI ADDS SHINE TO CHIPS, ITV TOP GAINER (0732 GMT) The pan-European STOXX 600 benchmark is managing to hold near the over two-week highs hit in the previous session, trading just about flat as investors digest a deluge of earnings.
French carmaker PSA Group delivered a sharp increase in first-half profit, defying a global industry downturn as new models and cost savings from the integration of Opel-Vauxhall more than made up for weaker emerging market sales. Standing out against profit warnings from peers such as Daimler, PSA said on Wednesday its efficiency drive produced a 10.6% operating income gain even as deliveries went the other way - with a 12.8% decline posted earlier this month. The recurring operating income came in at 3.34 billion euros, with net income up by almost a quarter to 1.832 billion as revenue slid 0.7% to 38.3 billion.
Luxury carmaker Daimler said it would intensify cost cuts after legal risks for diesel-related issues and the cost of replacing Takata airbags triggered a 1.56 billion euros ($1.74 billion) loss before interest and taxes in the second quarter. The company reduced its sales outlook for Mercedes-Benz cars and said 4.2 billion euros in one-off expenses hit earnings, mainly at the cars and vans divisions, contributing to an operating loss at group level, compared with a 2.6 billion profit in the second quarter last year. Daimler pledged to cut costs in response but provided few details under new Chief Executive Ola Kaellenius, who took up the top job two months ago.