Renault’s third-quarter sales rose 21% to 9.8 billion euros

PARIS — Renault said group sales reached 9.8 billion euros ($9.57 billion) in the third quarter as price increases helped the automaker generate revenue growth despite a decline car sales compared to the previous year.

The group’s overall revenue rose 20.5% after adjusting for the sale of its former Russian unit AvtoVAZ, the company said in a statement on Friday.

Renault added that it recorded its best price effect even as quarterly vehicle sales fell 2.4% to 481,000 from a year ago.

The revenue growth reflects the automaker’s focus on improving pricing policy, optimizing trade discounts and prioritizing the most profitable channels, Chief Financial Officer Thierry Piéton said in the statement.

Renault also confirmed its outlook for the full year, including an operating margin target above 5%, compared to 3.6% in 2021, and automotive operating free cash flow above 1.5 billion euros.

The automaker enters the final quarter of the year with major challenges ahead as it finalizes plans to split its combustion engine and electric vehicle businesses into two separate units amid tense talks to reshape its strategic partnership with Nissan.

Renault is Nissan’s largest shareholder with 43% while the Japanese manufacturer owns 15% of its partner.

The two companies said last week they were in talks on a new phase of their partnership which could include Nissan’s investment in Renault’s new electric vehicle business.

Such a change could mean the biggest reset in their relationship since the 2018 arrest of longtime chief executive Carlos Ghosn. Talks so far have considered Renault selling part of its stake in Nissan, sources told Reuters.

The automaker is due to hold an investor presentation on Nov. 8.

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