Strong sales of new models pushed French carmaker Renault's profit up by nearly 50 percent in 2015, but it slashed the value of its stake in Russia's AvtoVAZ as sales there slumped.
Mixed news from Renault. Strong sales of new models pushed its profit up by 48 percent for last year, but the French carmaker said it was having to slash the value of its stake in Russia’s AvtoVAZ.
Renault’s indirectly owns 37 percent of the company which makes Ladas.
Car sales in Russia have slumped and the total loss attributed to AvtoVAZ for last year was 620 million euros with more red ink expected this year.
Renault expects the Russian market, which has roughly halved since 2012, to fall another 12 percent this year.
“I don’t expect good news from Russia in 2016,” Chief Executive Carlos Ghosn said.
— Renault (@Groupe_Renault) July 30, 2015
Worldwide Renault’s sales rose 3.3 percent last year with its Capture and Kadjar models particularly popular.
There were also solid gains for its updated Trafic van and Logan budget cars.
Net income for 2015 rose to 2.82 billion euros from 1.89 billion a year earlier as revenue climbed 10.4 percent to 45.3 billion euros.
Against a backdrop of a weak emerging market outlook for 2016, Renault reiterated its pledge to increase revenue and profitability for the year.
“We should be able to grow or at least maintain our sales positions in all regions,” Ghosn said.
Demand in Brazil, its second largest market, is expected to shrink a further 6 percent,