Renault to cut R&D as inventory bites
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While the semiconductor inventory issue may have settled down, Renault is still suffering for an excess of vehicles.
The excess inventory is falling to 530,000 vehicles in June, but this has hit the first half figures, leading to cuts. The company saw revenue up 2.5% to €27.5bn, but the collapse of Nissan also contributed to the weak results with a €900m charge.
“Renault Group is pursuing its strict commercial policy, prioritizing value creation over volume to protect its launches. Renault Group is also strengthening its short-term cost reduction plan and is stepping up its initiatives on more structural levers. This plan is mainly based on SG&A selling and generation administration cost reduction, manufacturing and R&D savings,” it said.
As a result it is aiming for a free cash flow of €1bn to €1.5bn for 2025, down from a plan for €2bn.
CEO Luca de Meo stepped down suddenly last month, and Renault yesterday appointed Scottish chief financial officer Duncan Minto as interim CEO while looking for a new boss.
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