Renault, which is making profits again, Stellantis, which is doing almost as well as TotalEnergies… 2023 will be a very good harvest for the two French manufacturers. Both saw their sales increase substantially
With a 7% increase in the number of vehicles delivered and a 13% increase in its turnover, Renault shows even stronger growth than Stellantis, but it must be remembered that in 2022, the group led by Luca de Meo had to give up the Russian market and abandoned the Lada brand. In terms of profits, with a net result of 2.2%, Renault comes out of the red. For its part, Stellantis records the best profit since its creation in 2021: 18.6 billion euros.
Stellantis sales soar in Africa and the Middle East
How can we explain this performance in the same year in which consumers saw their purchasing power fall and credit rates increase significantly?
For Stellantis, there is the fact that the group has been quite successful in electrifying part of its range. Its sales of electric cars have increased by more than 20% worldwide, thanks in particular to subsidies granted by states. But Stellantis also achieved excellent results in Africa and the Middle East (sales increased by 64%), where only thermal cars are used.
Dacia becomes the second best-selling brand in Europe
For Renault, the explanation is different. Firstly, there is the fact that the new models coming out of their factories are of higher quality and, often related to, higher margins. The group thus generates an operating margin 7.9% higher than that of the German Volkswagen. In addition, there is obviously the success of Dacia, which has become the second best-selling brand in Europe. And this success is also due to the increase in the range of models of this brand, which no longer aims to be low cost, but rather promises to offer excellent value for money.
Therefore, Renault shareholders like those of Stellantis have reason to rejoice. The value of its shares is increasing, as are its dividends. But what about the employees? It is worth noting in this regard the care taken by the leaders of the two groups to communicate well on the subject.
4,100 euros in profit-sharing bonuses for Stellantis employees
On the one hand, Stellantis explains that 1.9 billion euros will be redistributed among all its employees around the world. In particular, with an incentive to buy shares of the group to also benefit from the dividends (up to 1000 offered for the purchase of shares that can also be acquired at a 20% discount. And then, in France, Stellantis announces the payment of a bonus incentive of 4,100 euros, an amount slightly less than last year, but nevertheless very substantial.
“We are going to have something very comparable,” says Renault CEO Luca de Meo in BFM Business.
But the absolute priority remains employee participation, so that the largest possible number of employees are shareholders of the group. This works relatively well: they already own more than 5% of the capital. And Renault maintains its goal: to reach 10% of the capital in 2030.
Source: BFM TV
