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Renault emerges as winner in Trump tariff chaos

The disturbances caused by Donald Trump’s trade policies have improved the entire auto industry except for a smaller player: Renault France.

After he came out of a five-year transformation during the era of Luca de Meo president and with any barely American sales, Renault-at least at the present time-is isolated from the 25 percent tariff that Trump imposed on all imported vehicles to the United States.

“I had a lot of misery as Renault CEO in the past four years, but at least, in this case, I should not be the first to worry.”

However, analysts and those familiar with the company say that the slowdown in the broader market caused by identification chaos may harm the plans of De Meo to increase the expansion of its share in electric cars as well as hybrids.

“In the storm, we do a very good job, but we will see how the boat looks after that. The storm is difficult,” said one of the companies.

Trump’s sweeping tariff was disrupted on vehicles and car components of supply chains, damaging many big players, including Toyota, Volkswagen, Gunres Motors and Hyundai.

Stephen Retman, an analyst at Bernstein, said Renault was among the best isolated from uncertainty in customs tariffs, although this will not be the case in “the collapse of the generalized market.”

Under the leadership of De Meo, Renault reinforced the cost structure and its renewed models, with the help of former PSA engineering director Gilles Le Borgne.

Luka de Miu
Luca de Meo: “At least, in this case, I shouldn’t be the first to feel anxious.” © Nathan Lane/Bloomberg

It has maintained the total manufacturing capacity and geographical fingerprint on a smaller scale compared to some other car manufacturers, resulting in fewer cars on higher margins. This has been validated at a time when its greater European competitors and Volkswagen are putting pressure in China and the United States.

However, although sales close to scratch in the United States, Renault was not fortified against concerns about the global slowdown and the effect of tariffs on cars demand, as his share price decreased by 9 percent over the past five days.

After completing its restructuring, De Meo wants to increase the EV share of Renault sales of about 12 to 20 percent, with the gap closed with Toyota in the European hybrid market. The Japanese car maker has a 48 percent market share in the region, compared to 20 percent of Renault.

“My ambition is to make sure that Renault can play in the Champions League finals, because I think we have the ability and have resources,” De Miu said, in reference to the football competition in Europe.

She also drafted her 25 -year alliance with April in 2023, on her way to reduce her share in her troubled Japanese partner, once by 43 percent, to 10 percent. It currently has 36 percent, including 18.7 percent now in French confidence you want to empty.

One banker told the Strip that Renault is not expected to rush to sell the class, especially after the integration talks between Nissan and Honda collapsed. The price of Nissan also decreased by 35 percent this year at the threat of definitions, which made the sale not attractive.

But despite its isolation from the United States, industrial monitors are wondering about the period when it can challenge the decrease in demand for new vehicles in Europe, a region that represents two -thirds of sales.

While “it was a wonderful, multi -year transformation … from a loss to 7.5 percent margin, this part of the story runs its course,” said Jeffrey Philip Hottois analyst in a video clip of customers as mediation reduced its classification on Renault from buying.

De Meo is due to the determination of a new growth strategy this year that is likely to focus on investing in technology and innovation, and expanding Renault’s business to “neighboring” cars, such as software and financing.

It also tends to partnerships to compensate for their lack of size. To address the growing competition in China, Renault has partnered with Geely at the combustion engine company and also collaborated in South Korea and Brazil.

But the key to future growth is to improve the sales of the EV group. Renault’s strong results were driven by strong sales and margins of the low -cost brand, to a large extent of the combustion engine brand; Also, hybrid sales increased by 45 percent last year to form a quarter of sales – however, their electric cars are completely sold badly last year.

EV sales decreased about 20 percent to form only 9 percent of the total group, as old models were pulled before new models such as R5 are launched.

An employee works on a collection line on the Ampere Electricity Renault group in Douai
Luka de Miu says that the Renault factory in Dawai, northern France, which focuses only on electrical models, is the “Heart of the Battle” for the future of the auto industry. © Francois

This came as part of a wider slowdown in the European market, which now shows signs of recovery. In the first two months of the year, the sales of battery cars increased by 28 percent from the previous year, with 15 percent of the sales of new cars, according to ACEA.

On a recent visit to the company’s factory in Dawai, northern France, which now focused only on electrical models, De Miu said it was the “heart of the battle” for the future of the car maker.

The factory will pump models of new R5 electronic technology while launching throughout Europe in the coming months. Renault also plans for a new EV from Dacia and a more affordable version of R5.

An electric vehicle in Dasia Spring on the second day of the Geneva International Motor Show
Dacia Spring EV was launched last year, and Renault is already plans for a new electric car for the Roman brand © Andrey Rudakov/Bloomberg

The R5 is the tenth most illuminated French car in the first three months of the year, and HSBC analysts indicated that the company has strong orders of launch operations at the end of 2024.

But with a new product portfolio, the auto maker should continue to persuade customers to buy their new electrical domains, a task that has become more difficult with the tariffs of definitions that are expected to slow the global economy and increase vehicle prices.

“We need to see the Europeans a little more convinced of the idea of ​​buying more electric cars.” “But we are playing to win, we don’t lose.”

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2025-04-11 04:00:00

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