Electric vehicle maker Renault said Friday that although revenue had dropped to $10.6 billion throughout the first quarter, the decrease was not as significant as analysts projected. The automaker previously announced it would likely lose production of 300,000 in 2022 due to the shortage of semiconductor chips. Still, revenue for Q1 dropped a slim 2.7% despite the ongoing supply chain disruptions.
How the war in Ukraine will affect Renault in the coming months is mainly unknown, as Russia is reportedly the automaker’s second-largest market, and the automaker stopped its operations in Moscow last month. The company also said it is “examining its options” for Russia-based auto company AvtoVaz, of which Renault is a majority owner, but did not provide further details.
Undoubtedly, the turmoil overseas is likely to have a significant impact on the automaker’s Russian business, as it already saw a 34% sales dip and a 16% drop in revenue there throughout Q1. Overall, Renault’s global sales dropped 17% for the first quarter as a whole.
Renault also said last week it is continuing to work on its plan to separate its combustion engine and electric vehicle businesses, citing that a division of the sectors could allow the automaker to get more funding for its EV technology. Bloomberg reported that Chief Financial Officer Thierry Pieton said Renault is “weighing options for carving up its business from ‘as simple as showing the numbers separately’ to an initial public offering of its EV business that could take place in the second half of next year.”
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