The poor Euro economic conditions are reflected in the demand for new cars and Renault SA (EPA:RNO) is not an exemption. High unemployment, especially among the young segment has pushed many consumers out of the new car market, making the slowdown stickier than if it were caused by shaky confidence. “Sales in the European Union will probably fall to 12.2 million vehicles this year, the lowest level since 1995 and 21 percent below the 2007 peak,” according to European auto industry group ACEA.
Renault is into a dropping pattern in the last few months. Currently, RNO is traded at € 31.31 per share. Mainly, the company started losing ground because of its Q 1 – 2012 financial bench marks.
Renault registered globally lower sales by 8% compared to Q1 of the previous year. The largest sales losses were registered in its biggest market, Europe. 20% of Euro sales decreases are a large signal, which was taken into consideration by binary option investors and as a result binary RNO dropped. More importantly, the group’s total revenues in Q 1 – 2012 shrunk by almost 9%.
Unless, Euro economic conditions improved and purchases of Renault products escalate, most likely shining days are not going to come for the values binary RNO.
- The Renault Group: Renault, Dacia and Renault Samsung Motors
- Presented in present present in 118 countries
- History Dates Back to 1899
- CEO – Carlos Ghosn
The information in this analysis is collected from different sources and should serve for informative purposes only. The author shall not be held responsible for the validity of the presented information. No part of this analysis recommends the purchase or sale of a currency pair or any other financial instrument.