Renault Group Faces 2022 Loss and Strategic Turnaround
Renault Group reported a loss of 700 million euros in 2022, following a 967 million euro dip in 2021. Despite these negative figures, the year is not to be judged as a failure. It is viewed as solid progress when measured against the group’s ambitious Renaulution plan. A big factor in the 2022 result was the sale of assets in Russia, including Renault Russia and its stake in Autovaz, which weighed on overall performance.
Looking at 2022, the mood is more hopeful. The company plans to resume dividends for the first time since 2019, and many indicators, such as revenue and operating margins, show improvement. The Russian exit cut adjacent losses from the group by a substantial amount, yet the impact of that market remains a defining factor. CEO Luca de Meo has stated that the decision to exit Russia could not wait, given the unsustainability of the business as the conflict in Ukraine began.
Even with the negative drag, Renault’s numbers show resilience. Revenue rose by 11.4 percent to 46.391 billion euros, with the operating margin landing at 5.6 percent, surpassing the 5 percent target set by the Renaulution plan for 2025. The operating profit stood at 2.595 billion euros, an improvement from the 1.663 billion reported the prior year. Nissan’s contribution continued to grow, adding 526 million euros and helping offset the prior losses seen in 2020.
Strategically, Renault prioritizes profitability per unit and is sharpening its focus on electrified models. The company highlights E-Technology as a growing pillar of the portfolio, now accounting for 39 percent of its mix. This shift positions Renault as a leading player in the electric vehicle market in Europe and a strong contender in hybrid and conventional segments. Notable models driving this momentum include the Renault Arkana, where 86,000 sales were recorded with 65 percent of those units powered by E-Tech in Europe. The Megane E-Tech Electric contributed 33,000 units, while Dacia Sandero achieved 229,500 sales. The Spring Electric posted 48,900 sales with a 33 percent increase, illustrating continued demand for electrified mobility under the AlpA brand, which carries bold expansion plans.
Looking ahead to 2023, Renault Group aims to return to positive results with an operating margin around or above 6 percent and an operating cash flow near 2 billion euros. Mobilize Financial Services is expected to stay stable, supported by a 2022 dividend of 800 million euros and a near-term dividend flow of 2,100 million euros witnessed in 2022. The group remains focused on expanding its electrified lineup and driving profitability across key markets, including North America and Canada, where demand for electrified transport is rising and regulatory support continues to strengthen vehicle electrification adoption.