Ghosn defends Renault in diesel emissions scandal – Financial Times

Carlos Ghosn, chief executive officer of Nissan Motor Co. and Renault SA, stands alongside a Renault Captur on the first day of the 83rd Geneva International Motor Show in Geneva, Switzerland, on Tuesday, March 5, 2013. This year's show opens to the public on Mar. 7, and is set to feature more than 100 product premiers from the world's automobile manufacturers. Photographer: Chris Ratcliffe/Bloomberg *** Local Caption *** Carlos Ghosn©Bloomberg

Renault’s chief executive has actually launched a belligerent defence of the French carmaker in the face of investor comes to that it was being pulled in to the European diesel emissions scandal.

Renault has actually been under tension because it revealed last month that its offices had been searched by government fraud investigators as portion of a probe in to car emissions, sending shares down 10 per cent in a day.

More

On this topic

IN Automobiles

The state said that while there was no evidence of cheating akin to just what happened at Volkswagen, it had located that some Renault cars had emissions that “exceeded [emission] limits” in real-globe driving conditions.

Carlos Ghosn said that every one of Renault cars “followed the norms”, and while their cars could perform several times even worse in so-called “real-world” conditions compared to in the lab he said it was the exact same for each carmaker.

“You can easily say that anybody is cheating . . . test any sort of various other vehicle you will certainly discover this type of things,” he told a group of analysts on Friday.

Mr Ghosn added that while some carmakers may have actually a smaller sized gap in between the test and the actual globe compared to Renault, he was not also sure this was an excellent investment. “You have actually to ask, just what is the incentive for the consumer?”

He said Renault respected the rules as they are written and a much better investment for the future — and for the environment — was all-electric cars, “of which Renault is a leader”.

The comments came as Renault reported full-year results, where strength in the European vehicle market helped the business report a net income up by nearly 50 per cent to €2.8bn in 2015.

Revenues flower 10.4 per cent to €45bn while its operating margin flower from 3.9 per cent to 5.1 per cent of sales, beating its 5 per cent midterm goal.

The recovering European automotive market, which was up 9.4 per cent over the year, helped Renault to offset significant weakness in emerging markets, especially in Russia and Brazil.
The European markets were sturdy while our main emerging markets were in turmoil

– Dominique Thormann, chief financial officer

Renault took a €620m loss on its controlling stake in Russian automaker AvtoVAZ and said the bill was most likely to rise as it injects Much more capital to shore up the carmaker in the face of collapsing Russian demand.

The business likewise reported a 15 per cent fall in brand-new vehicle registrations in Latin America, which has actually been strike by a troubled Brazilian economy, and a 12 per cent fall in the Asia-Pacific region.

“The European markets were sturdy while our main emerging markets were in turmoil,” said Dominique Thormann, chief financial officer.

Renault likewise gained market discuss in Europe on the spine of brand-new models including the Kadjar sport utility vehicle.

Mr Ghosn warned that 2017 would certainly not observe a “excellent new” Russia and Brazil, yet he foresaw strength in Europe, India and China too as a return of Renault to the Iranian markets after sanctions lifted earlier this year.

He threw down the gauntlet to rival carmaker Peugeot, which in January signed a contract along with Iranian carmaker Iran Khodro to return to the country and develop 200,000 cars a year.

“We don’t have actually to authorize an agreement due to the fact that we never ever got out [of Iran],” said Mr Ghosn. “You are seeing observe a ramp-up of Renault a lot faster compared to anybody else.”

Copyright The Financial Times Restricted 2016. You could discuss making use of our guide tools.
Please don’t reduce articles from FT.com and redistribute by email or short article to the web.

Leave a Reply