RCI Banque, the captive finance partner of the
Renault Group (also responsible for Nissan, Dacia and Infiniti),
has reported a successful third quarter, though finance sale
revenue has grown more slowly than car sales revenue for the Group
as a whole.
Financing revenue by RCI Banque is up 9.7% on
the third quarter of 2010, contributing €486m (£428m) to global
Group revenues, which have risen 11.9% (€9,745m (£8,574m)) on the
back of a 12% rise in automotive sales.
Go deeper with GlobalData
Worldwide, new financing contracts issued by
RCI Banque rose by 2%, or 235,100 agreements compared to the second
quarter, and loans outstanding rose by 9.1% to a total of €22.9bn
(£20.1bn).
Renault attributed the good figures to record
global sales of 632,412 (6.7% up on the same period in 2010),
citing growth especially in Brazil and Russia.
“Europe is static, maybe falling compared to
emerging markets,” explained Malcolm Banfield, commercial director,
RCI Financial Services. “Emerging markets are where the growth has
really come” and where RCI Banque “has increased our penetration
into sales of the brand.
“Dacia is a big contributor. It’s at the entry
level of the market and has the greatest potential for growth,”
said Banfield.
How well do you really know your competitors?
Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.
Thank you!
Your download email will arrive shortly
Not ready to buy yet? Download a free sample
We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form
By GlobalDataThe global picture is at odds with that of the
UK where Renault, Nissan and Infiniti are available (but
not Dacia until 2013). While new car sales are down 12% for
the Group (Renault down 36%, Nissan up 11%) for the year-to-date,
financing has “outperformed sales of the brand,” according to
Banfield.
“Thanks to increasing finance on Nissan where
the average vehicle price and advance tends to be higher,” the
value of advances written by RCI Financial Services is up 2%.
RCI has financed approximately 55,000 (39,000
new) vehicles over the year-to-date, which represents a 4% decline
compared to 2010, finance penetration in retail sales has increased
to 45%.
RCI Banque also confirmed available securities
of €6.6bn (£5.81bn), as part of the Group’s confirmed objective for
2011 to reach and maintain Automotive operational free cash flow
(minus dividends, net investments and changes in working capital)
of €500m (£440m).
richard.brown@vrlfinancialnews.com
