Renault: electricity for the deposit? - 2

Renault: electricity for the deposit? –

An advertisement of DZ BANK AG

The acquisition of the Italian-American car manufacturer FiatChrysler by Renault failed. FiatChrysler attributes the French policy.

France holds 15% of Renault shares and has apparently called for extensive job guarantees during the negotiations. From the merger, Renault hoped for lucrative synergies. The latest quarterly figures are also experiencing only moderate success. Nevertheless, Renault seems well positioned for the future. To date, the Group is one of the few to offer a wide range of affordable electric vehicles: by 2022, offer eight E models at suitable prices on the road. On the one hand, it offers a wide selection of electrified vehicles and, on the other hand, they are financially viable for a large mass thanks to their low starting prices, slightly lower than 22 000 EUR. The ups and downs of the news translate into the high volatility of Renault's share, which offers ideal conditions for investment in certificates.

Renault SA is the leading French car manufacturer, but is also present in 125 countries in the world of cars and trucks. Renault has a large share of sales in France, Brazil, Germany, Turkey and Spain. In addition to the main brand, Renault also includes Romanian companies Dacia and Korean Renault Samsung Motors Group. Dacia, acquired in 1999, is synonymous with solid and cheap cars and more, Renault cooperates closely with Nissan by holding each other a larger share of their capital. In addition, Renault has been working with Daimler AG since 2010 and since 2008 with the Russian manufacturer AvtoVAZ new partnerships. In addition to automotive engineering, Renault offers car financing and auto insurance services. The company was founded in 1898.

FiatChrysler (FCA) withdrew its "offer of merger" to Renault after its board of directors postponed the vote on the offer a second time, probably at the instigation of the state French. In addition to France, the previous partner, Nissan, had expressed reservations about a "quick" merger decision.

The management of Renault regrets this failure because the merger was found useful in financial and industrial terms. We must not completely agree with this point of view: the merger would have created the world's third largest car manufacturer after the sale of vehicles in the world. However, without the active participation of Nissan, the Asia region would be "bloodless" and important future topics, including electromobility, would not have been sustainable. However, the FCA's rejection of merger is not really surprising. Too far were the requirements of the French employment guarantee policy and other compensation for a merger consent in relation to FCA's offer. FCA's refusal now increases the pressure on Renault's management to "revitalize" the existing partnership with Nissan for twenty years. A re-founding of the partnership would allow the new leaders Senard (Chairman) and Bolloré (CEO) to step out of the shadow of former CEO Ghosn and at the same time create a climate of trust with existing partners, Nissan and Mitsubishi. The existing alliance had to be consolidated in order to remain viable in the automotive market.

The French automaker has recently presented some sobering figures for the first quarter. Compared to the same quarter of the previous year, the turnover of a little less than 5%, to 12.5 billion euros, responded exactly to market expectations. The group defended its market share of more than 26% in France with sales of 178,000 vehicles. This was achieved with 112,000 units sold also in the important sales region of Russia. Since the tightening of sanctions imposed by the United States in August 2018, sales in Iran have collapsed. Far fewer vehicles have been sold in the Argentinian and Turkish economies in crisis. Renault confirmed the previous outlook of increase in comparable business and operating margin of "6%". The 6% margin target is considered ambitious because the costs of raw materials and personnel are not clearly defined in the coming quarters. In addition, there are sales risks in Europe; et al triggered by Brexit uncertainties. The drop in first quarter revenues was not a surprise. At present, the differences between Nissan and Renault's car partners also have a negative impact on a holding company.

Given the current commercial development of Renault, the premium certificate with ceiling from DZ BANK (WKN DDT9LV) on the Renault action offer. It is aimed at investors who assume that the Renault share will not be traded at an amount below EUR 40.00 during the period of observation of the barrier from 16.01.2019 to 20.03.2020. It has a fixed term and will expire on 27.03.2020 (repayment date). If the action Renault is still above the bar of 40.00 euros during the days of observation (16.01.2019 to 20.03.2020), the investor will receive the bonus amount of 65 , 00 euros.

If the price of the Renault share is equal to or less than the barrier for at least one point during the observation dates, the investor loses the right to receive the bonus amount. The amount of the redemption corresponds in this case to the closing price of the Renault share at the valuation date (20.03.2020). However, the amount of the refund is always limited to the maximum amount of 65.00 euros. Participation in a positive development of the Renault share above the maximum amount of € 65.00 does not take place. The claims of the Renault share (dividends, voting rights, etc.) are not entitled to investors. During the term, the investor receives no interest or similar income.

The investor incurs a loss if the refund amount is less than the purchase price paid. A total loss of invested capital is possible (risk of total loss), a total loss the capital invested is also possible if the transmitter a bonus certificate his obligations Certificate due to official orders or insolvency (insolvency / overindebtedness) can not fill,

Full details of the bonus certificate DZ BANK with cap with WKN DDT9LV, in particular on the binding conditions, risks and information on DZ BANK are available in the relevant prospectus. On the website of DZ BANK, the base prospectus prepared by DZ BANK for the public offering and any supplements ( and the associated final terms and conditions ( are established, as well as the legal provisions in force.; enter the ISIN or the corresponding WKN and then under "Documents") published. During the public offer, copies of the aforementioned documents in printed form are also available free of charge upon request from DZ BANK AG, Deutsche Zentral-Genossenschaftsbank, Frankfurt / Main, F / GTDR, Platz der Republik, 60265 Frankfurt am Main, Germany.

The basic information sheet prepared by DZ BANK is available in the latest version on the website of DZ BANK (, entry of the ISIN or WKN correspondent, then under " Documents "). This applies as long as the product is available to private investors.

standing: 06/12/2019


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