Yesterday they were colleagues, today – competitors. At the end of February, the companies released their performance statistics, shocking both the public and each other. How did it happen that Renault and Mercedes ended up on the same profit line?
This information is especially relevant for those involved in the business of selling cars imported from the USA.
Mercedes and Renault — two carmakers few analysts ever thought to compare. One is focused on creating luxurious vehicles with a German accent, while the other produces affordable, mid-range cars. Hardly a likely pair for a side-by-side comparison. However, recently published statistics tell a different story. Mercedes-Benz is projected to achieve a profit margin of 6–8% in 2025, while their French counterparts at Renault expect to hit up to 7%. What’s the secret behind this unexpected success?
How Did Renault Bounce Back from Crisis to Profitability?
Luca de Meo, an Italian by origin, became CEO of Renault in 2020 when the company was in crisis. The pandemic, coupled with a full-scale geopolitical invasion, had severely impacted every facet of the automaker’s operations. Losses totalled €7.4 billion, and the gradual collapse of the Nissan alliance worsened the situation. Renault lost its number-two position in the French market.
The past few years were extremely challenging for the company. But under Mr de Meo’s carefully crafted strategy, Renault not only bounced back — it turned a healthy profit. According to the CEO, the company is breaking its own records and functioning as a loyal, disciplined team of passionate professionals. With discipline, focus, hard work, and a love for automobiles, the French brand managed to stay afloat during its most difficult period.
Key contributors to Renault’s renewed profitability include:
- Ongoing profitability analysis of its vehicle lineup. The team closely studies market demand and customer needs to offer models that align with buyer expectations.
- A strong focus on reducing the production cost of new EVs, even amid declining demand for green vehicles in Europe. To achieve this, Mr de Meo initiated a partnership with Chinese engineers. Renault has recruited a team of specialists (technicians and software developers) for its Shanghai facility to accelerate innovation and learn from top talent in electric vehicle manufacturing.
- Aggressive sales of new models, such as the electric Renault R4 E-Tech and R5, released at an accessible price point of €35,000. This pricing allows Renault to compete directly with Chinese automakers. In 2026, Renault plans to launch the electric Twingo at a significantly lower price point of €20,000.
“In today’s world, it pays to be more compact and agile.” ~ Luca de Meo, CEO of Renault
Automotive giants like Renault and Mercedes-Benz provide a fascinating case study of continuous global market competition. Renault’s story proves that adaptability is key to survival and success in difficult conditions. More importantly, it reminds us that no one wins alone — reliable partnerships are essential.
Our company is ready to support your business with vehicle import services from the USA on favourable terms. From vehicle selection to purchase and logistics, we handle it all, allowing you to focus on your customers and business growth — just as Luca de Meo did.
His team restructured Renault’s lineup and refocused on customer needs. They expanded their knowledge by collaborating with Chinese engineers and integrating new expertise. Likewise, our team is ready to share its own experience so you can build a thriving business. With us, you’ll stay ahead of the competition and become a leader in the used car market in Georgia.
