Renault shines in the stock market and is doing better than Nissan

Renault shines in the stock market and is doing better than Nissan

Long perceived as a troubled player on the stock market, weighed down by various scandals and controversies, Renault has made a remarkable recovery under the watch of Luca de Meo. For emphasis controlling costs and prioritizing quality over quantitythe French manufacturer has directed its strategy towards a more promising future.

An interesting change for the Renault group

Despite the number still lower than that of its competitors like Volkswagen and Stellantis, Renault has posted the biggest growth in the CAC 40 with an increase of 34.6% since January.. This strength is emphasized by financial analysts, who see Renault as an investment opportunity with great growth potential.

Renault’s strategy seems to be paying off, with several factors contributing to its success. Among these, the absence of the group in the Chinese market, is considered bad, and the favorable environment in Europe. Increased investor confidence in Renault’s ability to generate cash was bolstered by better-than-expected financial results in 2023.

Good comparison with Nissan

In addition, cancellation of Ampere IPOsimplifying the structure of the group, and the prospect of beneficial cooperation for its subsidiary dedicated to electricity indicate a clear and acceptable strategic direction.

The comparison between Renault and Nissan, which has long seen the French manufacturer in the shadow of its Japanese partner, has taken a big turn. Renault’s stock market valuation now exceeds that of Nissan, marking a symbolic change after years of Japanese rule. The shift is all the more notable as Nissan struggles to revive its sales, facing a competitive Chinese market and an aging product line-up.

While Nissan is still finding its way, Renault is using its strengths. Renault’s upward trend on the stock market is the result of a major reform, led by Luca de Meo who had the reputation of setting a very clear road map.