Renowned French vehicle manufacturer Renault was established in 1899 by the Renault brothers. It is a global leader in the manufacturing of cars, vans, trucks, buses and more. In its early days, the company gained acknowledgment by participating in famous car races. It had a slip up in 1903 when an owner was killed in a car accident. Nevertheless, the manufacturer went on to create more affordable cars and it is now turning its attention to electronic vehicles as well.
The brand started selling shares to the public in 1994 and it is now traded on the Euronext stock exchange.15% of it is owned by the French government, however.
In 2016, Renault partnered with Nissan and Mitsubishi to become the fourth-largest automotive group behind General Motors, Volkswagen, and Toyota.
Alongside other car brands, Renault recently faced criticism and became involved in diesel emissions scandals. Its shares fell in 2017 when it was accused of possible exhaust emissions cheating. Although the company denied the accusations, it has since started eliminating its production of diesel cars.
Before deciding to invest in Renault stocks, traders should take a few factors into consideration. There are certain dynamics that have been known to affect its price:
- Partnering with Nissan has enabled Renault to share its technology research and manufacturing costs. This has in turn helped cut the company’s expenses.
- France has placed a ban on all fossil fuels by 2040. This has encouraged Renault to increase its production of electric cars. By 2022, the company expects to gain half of its income from the selling of these new motors.
- As there is foreign demand for Renault’s vehicles, its revenue is affected by currency fluctuations in the Euro as well as EU monetary policy adjustments. For example, if the Euro is weak, export costs are cheapened which in turn, increase foreign sales.
- Market share is determined by Renault’s ever-changing customer demographics which have an increased demand for smaller and more affordable car models.
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