Skip to main content
The Globe and Mail
Support Quality Journalism.
The Globe and Mail
First Access to Latest
Investment News
Collection of curated
e-books and guides
Inform your decisions via
Globe Investor Tools
Just$1.99
per week
for first 24 weeks

Enjoy unlimited digital access
Enjoy Unlimited Digital Access
Get full access to globeandmail.com
Just $1.99 per week for the first 24 weeks
Just $1.99 per week for the first 24 weeks
var select={root:".js-sub-pencil",control:".js-sub-pencil-control",open:"o-sub-pencil--open",closed:"o-sub-pencil--closed"},dom={},allowExpand=!0;function pencilInit(o){var e=arguments.length>1&&void 0!==arguments[1]&&arguments[1];select.root=o,dom.root=document.querySelector(select.root),dom.root&&(dom.control=document.querySelector(select.control),dom.control.addEventListener("click",onToggleClicked),setPanelState(e),window.addEventListener("scroll",onWindowScroll),dom.root.removeAttribute("hidden"))}function isPanelOpen(){return dom.root.classList.contains(select.open)}function setPanelState(o){dom.root.classList[o?"add":"remove"](select.open),dom.root.classList[o?"remove":"add"](select.closed),dom.control.setAttribute("aria-expanded",o)}function onToggleClicked(){var l=!isPanelOpen();setPanelState(l)}function onWindowScroll(){window.requestAnimationFrame(function() {var l=isPanelOpen(),n=0===(document.body.scrollTop||document.documentElement.scrollTop);n||l||!allowExpand?n&&l&&(allowExpand=!0,setPanelState(!1)):(allowExpand=!1,setPanelState(!0))});}pencilInit(".js-sub-pencil",!1); // via darwin-bg var slideIndex = 0; carousel(); function carousel() { var i; var x = document.getElementsByClassName("subs_valueprop"); for (i = 0; i < x.length; i++) { x[i].style.display = "none"; } slideIndex++; if (slideIndex> x.length) { slideIndex = 1; } x[slideIndex - 1].style.display = "block"; setTimeout(carousel, 2500); } //

The logo of French car manufacturer Renault is seen at a dealership in Bordeaux, France, on June 12, 2019.

Regis Duvignau/Reuters

French car maker Renault is on the hunt for new partners to buy its cars and components as it reported a fall in quarterly revenue and pushed ahead on a strategic review with “nothing off the table.”

The review is expected to be completed within a few months and investors are hoping that will allow Renault to turn a page on months of uncertainty after the arrest last year of Renault-Nissan alliance boss Carlos Ghosn.

All aspects of the business – including Renault’s long-time, high-profile participation in Formula One motor racing – are being examined, interim CEO Clotilde Delbos told analysts.

Story continues below advertisement

Group revenue fell 1.6 per cent to 11.3 billion euros in the third quarter, weighed down by a drop in production at partners Nissan and Daimler and declining demand for diesel engines which compounded the effects of a slowing global market.

Sales by volume in the quarter were down 4.4 per cent.

Shares in Renault, which owns 43.4 per cent of Japanese manufacturer Nissan, were largely unchanged after publication of the company’s quarterly results.

Investors had already digested the news about weaker revenue since the company issued a profit warning last week, which Ms. Delbos said was partly due to a decline in sales to partners.

Besides selling Renault-branded vehicles, the company also uses its plants to manufacture vehicles for its partner, Nissan, and for Daimler, and it is a specialist in making diesel engines for other automakers.

Sales of the vehicles it makes for partners have slowed, with a knock-on effect on Renault’s revenues, while demand for diesel engines in Europe has declined.

Renault said those effects were compounded by the closure of the Iranian market since last year as a result of U.S. trade sanctions.

Story continues below advertisement

Renault has been trying to regain momentum after Mr. Ghosn’s arrest in November, 2018, in Japan, on financial misconduct charges that he denies.

Earlier this month, Nissan appointed a new chief executive and days later Renault CEO Thierry Bollore – who had been appointed under Mr. Ghosn – was pushed out, to be replaced on an interim basis by Ms. Delbos, who is Renault finance director.

On the call with analysts, she said there was little prospect of sales to partners rebounding in the near future, so the company would look for new partners to sell cars and components to. She did not give details on what kind of savings Renault was seeking with Nissan.

She said the company hoped to conclude within a few months a review of its Drive the Future strategy – a plan that was launched in 2017 by Mr. Ghosn and which now is set to be changed as part of the alliance’s effort to put the Ghosn era behind it.

F1 motor racing, a pet project of Mr. Ghosn’s that costs Renault million of dollars to fund each year, is among everything being looked at, though it is not being targeted, she said.

“Everything can be on the table at some point,” Ms. Delbos said.

Story continues below advertisement

“It is too early to mention the routes we are working on, we need to refine, we have quite a few ideas already that have been put on paper, before we can announce everything, I guess in a few months,” she said.

Also on Friday, Renault revised downwards its forecasts for the growth of the global auto market, saying it expected a year-on-year decline in 2019 of around 4 per cent, compared to its previous forecast of about 3 per cent.

Report an error
Due to technical reasons, we have temporarily removed commenting from our articles. We hope to have this fixed soon. Thank you for your patience. If you are looking to give feedback on our new site, please send it along to feedback@globeandmail.com. If you want to write a letter to the editor, please forward to letters@globeandmail.com.

Welcome to The Globe and Mail’s comment community. This is a space where subscribers can engage with each other and Globe staff. Non-subscribers can read and sort comments but will not be able to engage with them in any way. Click here to subscribe.

If you would like to write a letter to the editor, please forward it to letters@globeandmail.com. Readers can also interact with The Globe on Facebook and Twitter .

Welcome to The Globe and Mail’s comment community. This is a space where subscribers can engage with each other and Globe staff. Non-subscribers can read and sort comments but will not be able to engage with them in any way. Click here to subscribe.

If you would like to write a letter to the editor, please forward it to letters@globeandmail.com. Readers can also interact with The Globe on Facebook and Twitter .

Welcome to The Globe and Mail’s comment community. This is a space where subscribers can engage with each other and Globe staff.

We aim to create a safe and valuable space for discussion and debate. That means:

  • Treat others as you wish to be treated
  • Criticize ideas, not people
  • Stay on topic
  • Avoid the use of toxic and offensive language
  • Flag bad behaviour

If you do not see your comment posted immediately, it is being reviewed by the moderation team and may appear shortly, generally within an hour.

We aim to have all comments reviewed in a timely manner.

Comments that violate our community guidelines will not be posted.

Read our community guidelines here

Discussion loading ...

To view this site properly, enable cookies in your browser. Read our privacy policy to learn more.
How to enable cookies