Renault is evaluating plans to manufacture its next generation of compact electric vehicles at its Palencia plant in Spain. The announcement was made by CEO François Provost following the release of annual financial results, according to Reuters and Agerpres.
The group previously produced all EV models in France, but expanding its electric range and growing competition from low-cost Chinese manufacturers in Europe are prompting a review of its production footprint.
€10.9 billion net loss amid Nissan revaluation
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In 2025, Renault reported a net loss of €10.9 billion, mainly due to the revaluation of its 35% stake in Nissan. The company noted that sales increased, driven by electric vehicle performance.
Revenue rose 3% to €57.9 billion. Excluding the Nissan impact, net profit fell 74% to €715 million, while the operating margin declined to 6.3% from 7.6% in 2024.
The accounting loss is linked to the gradual dismantling of the Renault–Nissan alliance established in 1999, which faced major disruption after the 2018 arrest of Carlos Ghosn. The stake revaluation reflected Nissan’s share price and weaker financial results.
Even excluding Nissan, profitability remains under pressure. Electric vehicles account for 14% of group sales and 20% of Renault brand sales, but generate lower margins than internal combustion models.
Photo: Renault Group
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