Renault has achieved its cost reduction and breakeven point targets by 2021 — CEO

PARIS (Agefi-Dow Jones)–The car manufacturer Renault has achieved its objectives of reducing fixed costs and lowering the breakeven point by 2021, its managing director, Luca de Meo, said on Thursday.

The group expected to achieve a 30% reduction in its breakeven point in 2023, that is to say the volumes necessary for the group to reach financial equilibrium, compared to the level of 2019. Luca de Meo announced Thursday , during a press conference, that this objective had been achieved by 2021 “two years ahead of plan”.

The leader also indicated that the target of a reduction of 2 billion euros in fixed costs had been reached in October 2021, more than a year ahead of the initial deadline.

Luca de Meo also announced that the Renault brand aims to sell only electric vehicles in Europe from 2030. “It’s a bold bet but it goes in the direction of history,” he said. -he declares.

The director general also indicated that the production losses due to the semiconductor crisis had registered in 2021 “at the level of what had been announced” in October, i.e. around 500,000 vehicles.

The leader explained that this shortage of electronic components would still cause “disturbances” throughout 2022, believing that this crisis should be more intense in the first half than in the second. “I do not think that [cette crise en] 2022 will be worse than 2021”, however judged Luca de Meo.

The CEO of Renault also declared that he was confident that the group would achieve its European carbon dioxide emissions targets for 2021. The Corporate Average Fuel Economy (CAFE) regulations require European car manufacturers to respect, on average, an emission level of 95 grams of CO2/km within their fleet of vehicles.

-Julien Marion, Agefi-Dow Jones; +33 (0)1 41 27 47 94; [email protected] ed: LBO

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January 13, 2022 06:31 ET (11:31 GMT)

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