Surprise Surprise for Renault!
February 15, 2013

Renault have recently reported a larger operating profit than they first expected as it looked to eliminate debt and stay above water in terms of finances in 2012. Like many other mass market manufacturers, Renault were forced to increase the price of their models at the beginning of 2012 and therefore had to create large amounts of discounts in order to turn over a profit.


Mazda operated in the same way and also recorded a profit for the year having increased the amount on discounts. Rivals PSA Peugeot & Citroen have recorded a record loss for 2012 as they reported a loss of £4.3 billion. A loss they blamed on the shrinking car market in Southern Europe and the current state of the European Economy.


Renault's sub brand, Dacia, had a storming year in 2012 as the budget branded models made its was across the globe and even ended the year with bigger market share than the parent company, Renault, in the biggest car market in Europe.


Other brands such as Fiat and Peugeot Citroen who posted a loss for the sales year of 2012 will be looking at the Dacia brand as the way forward, in terms of developing a model for little costs and selling it at a minor profit in volume. Fiat have released plans for sister brand Alfa Romeo to make a storming contribution in the next few years as they target the growing economy of the US to ensure that they achieve a profit.


However, Renault have confirmed the recent release of the new RenaultSport Clio 200Turbo as it looks set to tear up the car market in the UK. The Renault Clio is arguably one of the most valuable assets if not the most valuable asset in the French firms portfolio.


Renault along with other French dependant brands, such as Peugeot and Citroen felt a steep drop in the number of sales midway through last year, with Renault recording a market decrease of over 19 per cent. However, with the pleasant surprise of a profit for the sham that was the year of 2012 in the car market, Renault will now have more disposable capital to encourage other projects such as the Alpine sports facility.


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