Renault executive says it can't afford price war with Tesla and Chinese peers

News from this site on September 4. According to Reuters, Gilles Le Borgne, the head of engineering at French car company Renault, said at the IAA Munich Motor Show on Sunday that Renault is unable to participate in a deal with Tesla or Tesla. The high cost of price wars between Chinese competitors.

Borgne said, "The best strategy is to maintain current prices and adjust fixed costs."

UBS wrote in a report last week that the Renault brand's performance in the European market Higher exposure also makes it one of the brands most likely to face competition from Tesla and Chinese electric vehicle manufacturers.

In the first half of this year, Renault reported a corporate operating profit margin of 7.6%, the highest ever, and is already close to its 2025 profit margin target. The company said the results were due to rising new vehicle prices and lower production costs.

Renault’s net profit in the first six months of this year was 2.12 billion euros (this Site note: currently approximately RMB 16.769 billion), achieving a turnaround from losses to profits. In the same period last year, Renault suffered a loss of 1.68 billion euros (currently about 13.289 billion yuan), mainly because the company closed its business in the Russian market after the Russia-Ukraine conflict.

Renault CEO Luca de Meo said in a statement: "These results are the result of our continuous efforts to reduce costs over the past three years and our focus on value strategy combined with an unprecedented product offensive. Results."

The previous record for Renault's profit margin was 7% set in the second half of 2017, while Renault's goal is to reach 8% in 2025 and 10% by 2030. Renault also said its performance improvement was also due to rising car prices and pointed to promising sales prospects for its electric vehicles.

Advertising statement: The external jump links (including but not limited to hyperlinks, QR codes, passwords, etc.) contained in the article are used to convey more information and save selection time. The results are for reference only. All articles on the site contain this statement.

The above is the detailed content of Renault executive says it can't afford price war with Tesla and Chinese peers. For more information, please follow other related articles on the PHP Chinese website!