Renault to accelerate state aid repayment after swinging back to profit - SABC News - Breaking news, special reports, world, business, sport coverage of all South African current events. Africa's news leader.

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Renault plans to repay the state aid it received in the coronavirus pandemic ahead of schedule, the French carmaker said on Friday, after it swung to profit in 2021, beating expectations as it reversed out of two straight years of losses.

The group had already repaid 1 billion out of 4 billion euros in loans it had received to help it cope with the pandemic fallout, and plans to repay the rest ahead of the 2024 contractual timeframe. At least 2 billion will be repaid this year, and full repayment by end-2023 at the latest.

An operating margin of 3.6% exceeded the group’s own targets and placed it two years ahead of its “Renaulution” revitalisation plan, which had aimed at a margin of above 3% in 2023. The results boost follows the start of a vast restructuring to reduce fixed costs and refocus on Renault’s most profitable car models and markets.

For this year, the group, which had faced declining sales, margins and difficulties at its close partner Nissan, is targeting an operating margin of more than 4%, and an automotive operational free cash flow superior or equal to 1 billion euros, after the 1.6 billion euros recorded last year and an outflow of 4.5 billion in 2020.

 

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