But Renault CEO Carlos Ghosn faces a 20-percent bonus cut.
With new models such as the Kadjar, Megane, and Talisman, Renault’s rejuvenated lineup is certainly paying off. In the first half of the year, the group’s operating profit rose by a massive 40.6 percent to €1,541 million, while the automotive operating profit jumped by 64.9 percent to €1,121 million.
Renault’s first-half performance has been pretty much a success on all fronts, with sales enjoying a 10.6-percent hike, helping automotive revenues reach €24,078 million also possible thanks to a three-percent growth in sales to partners. Compared to January - June 2015, the group’s operating income is up by 50.6 percent to €1,476 million.
With new models like the facelifted Clio, Alaskan pick-up, and Koleos midsize SUV about to hit dealerships, the outlook for the second half of the year is optimistic. As a matter of fact, the company with the diamond logo is expecting a growth of 1.7 percent for 2016 compared to the previous year, mainly thanks to Europe, China, and India. However, demand in Brazil and Russia is expected to decrease by 15-20 percent and 12 percent, respectively.
Even though Renault is on a roll these days, CEO Carlos Ghosn is facing a 20-percent bonus cut to please the French government, thus reducing the bonus to 120 percent of his annual salary. That being said, Renault mentions Ghosn’s bonus could reach 180 percent of his salary if 2016 will prove to be a financially successful year for the company. Based on the first-half performance and the roll out of new models, there are reasons enough to believe 2016 will prove to be considerably better than 2015.
Carlos Ghosn has already promised €1 million of the bonus will be directed towards Renault’s foundation. The money will be put to good use in supporting education in areas affected by natural disasters and crisis situations, and also for aiding young people facing academic and employment problems.