Renault profits accelerate 50pc to new high as boss extends stay

FRENCH car giant Renault revealed it had notched up record revenues and profits yesterday, a day after handing its chief executive Carlos Ghosn another four years in the top job.

Renault’s net income leapt 50pc to €5.2bn (£4.6bn) in 2017 after a 14.7pc rise in revenues to €58.7bn.

Mr Ghosn’s reappointment coin- cides with a shake-up of the company’s management structure, with Thierry Bolloré taking on more responsibility for day-to-day management in the new role of chief operating officer.

Renault’s revenues were boosted by a 44pc surge in registrations of its Zoe electric car, the biggest-selling plug-in electric vehicle in Europe.

Mr Ghosn said: “2017 was another record year for Groupe Renault. With this performance and the implementation of our new strategic plan, ‘Drive the Future’, we are confident in our ability to face the current and future challenges of the automotive industry”. The Brazil-born boss has led Renault since 2005 and also heads up the firm’s alliance with Japanese car makers Nissan and Mitsubishi.

His reappointment was approved by the French state, which holds a 15pc stake in the company.

But he was forced to accept a 30pc reduction in his salary, which has been a source of contention in the past. Just 53pc of shareholders voted in favour of his €7m pay package last year.

The cut is thought to be partly due to the elevation of Mr Bolloré, who will now manage Renault’s chief financial officer and the head of HR. Renault’s fastest-growing major models included the no-frills Dacia Sandero, with a 30.7pc jump in registrations, and the Kwid compact SUV, up 11.7pc. Its Clio hatchback fared less well, with a 29.5pc slump.

The company’s top line was boosted by the addition of Russian Lada maker Avtovaz to its books, without which it would have grown 9.3pc. It plans to raise its dividend by 13pc to 355 cents per share.

Renault says it expects the global automotive market to grow 2.5pc this year, bolstered by the high-growth “Brics” countries (Brazil, Russia, India and China), while Europe will see a more modest expansion of around 1pc.

The car maker said its aims for 2018 were to grow revenues, maintain its group operating margin above 6pc, and generate positive operational free cash flow from its automotive arm.

Renault is Europe’s third largest car maker after Volkswagen and PSA, having sold 1.6m cars last year. It has 250 employees in the UK. Shares in Renault closed up 2.1pc at €87.80 in Paris.