Renault: Raises 2023 Guidance as Turnaround Takes Root but Delays Ampere IPO Until 1H 2024

No-moat-rated Renault raised its 2023 guidance from at least 6% operating margin and at least EUR 2.0 billion in automotive operational free cash flow to 7%-8% margin and at least EUR 2.5 billion cash flow. Management said the improved outlook was attributable to the turnaround plan, focusing on value over volume. The firm said that pricing and product mix as well as variable cost increases have been more favorable than expected. New guidance assumes the same volume as the previous, with Europe up low-single digits while Eurasia and Latin America are flat, respectively.