Push to Pass is working wonders at the PSA Group, lets see how they cope with vauxhall and Opel !

Successful execution of Push to Pass strategic plan

• Automotive recurring operating income at €1,442 million up by 10.7%, representing a record recurring operating margin of 7.3%[1]
• Group revenue at €29,165 million, up 5% vs 2016 H1
• Record Faurecia recurring operating margin1 at 5.7%
• Record Net income, group share, at €1,256 million
• Growth of net financial position at €7,631 million thanks to a positive €1,116 million Free Cash Flow[2]

"Groupe PSA record performance was achieved thanks to our customers who have made our last commercial launches great successes, and thanks to the continuous commitment of all Group employees in the execution of the Push to Pass plan, combining agility and business sense. The way the teams overcame headwinds brings confidence for the coming challenges." said Carlos Tavares, Chairman of Groupe PSA Managing Board.

Group revenues amounted to €29,165 million in the first half of 2017, up 5.0% compared to €27,779 million in the first half of 2016. The cumulated growth since the beginning of Push to Pass, excluding exchange rates impact, stands at +8.2%[3].

Automotive revenues amounted to €19,887 million, also up 3.6% compared to the first half of 2016, benefiting from the success of the new models and the pricing discipline.

Group recurring operating income amounted to €2,041 million, up 11.5% compared to the first half of 2016. The Automotive recurring operating income grew by 10.7% compared to the first half of 2016 at €1,442 million. This 7.3% record profitability level was reached despite raw material cost increases and exchange rate headwinds, thanks to a positive product mix and further cost reductions.

Group non-recurring operating income and expenses had a negative impact of -€112 million, compared to -€207 million in the first half of 2016.

Group net financial expenses decreased to €121 million, compared to €150 million in the first half of 2016.

Consolidated net income reached €1,474 million, up by €91 million, in spite of the negative impact of operations in China. Net income, Group share, reached €1,256 million, compared to €1,212 million in the first half of 2016.

Banque PSA Finance reported recurring operating income [4] of €312 million, up 5.1% compared to the first half of 2016.

Faurecia recurring operating income amounted to €587 million, an increase of 19.8% compared to the first half of 2016.

The Free Cash Flow of manufacturing and sales companies amounted to €1,116 million, driven by the improved profitability of operations.

Total inventory, including independent dealers, stood at 374,000 vehicles at 30 June 2017, down 25,000 units from end June 2016.

The manufacturing and sales companies' net financial position at 30 June 2017 was a positive €7,631 million, up €818 million compared to 31 December 2016.

Market outlook: for 2017, the Group expects the automotive market to grow by approximatively 3% in Europe, and 5% in China, Latin America and Russia.

Operational targets

The Push to Pass plan sets the following targets:

• Deliver over 4.5% Automotive recurring operating margin[5] on average in 2016-2018, and target over 6% by 2021;
• Deliver 10% Group revenue growth by 2018[6] vs 2015, and target additional 15% by 2021 [6].

Financial Calendar – 25 October 2017: third-quarter 2017 Revenue

Groupe PSA consolidated financial statements at 30 June 2017 were approved by the Managing Board on 20 July 2017 and reviewed by the Supervisory Board on 25 July 2017. The Group's Statutory Auditors have completed their audit and are currently issuing their report on the consolidated financial statements.

The interim results report and interim financial results presentation for 2017 are available at www.groupe-psa.com, in the “Analysts and Investors” section.

BMW Group sales grow over the month and first half, RR are down awaiting the new Phantom.

• BMW Group sales in first half-year up 5.0% to 1,220,819
• Electrified vehicles sales increase 80% to 42,573
• BMW Group delivers 232,620 vehicles in June, up 2.1%
• BMW sales increase 2.0%, totalling 192,873
• MINI sales grow 3.0% to 39,443
• Market launch of MINI Countryman PHEV grows electrified range to nine models

BMW Group sales achieved their best ever June, with sales in the month totalling 232,620, a 2.1% increase year-on-year. It was also a record first half-year with sales of the BMW Group’s three premium brands, BMW, MINI and Rolls-Royce, increasing by 5.0%; a total of 1,220,819 vehicles have been delivered to customers around the world so far this year.

“June rounds off our best ever first half-year and the BMW Group remains the world’s leading premium car company,” commented Dr Ian Robertson, Member of the BMW AG Board of Management with responsibility for Sales and Brand BMW. 

“We’ve already sold more than a million BMW vehicles this year, which is a new first-half-year record. June also saw our successful electrification strategy expand still further to include the MINI brand, meaning customers can now choose from nine electrified BMW Group vehicles. 

With sales of these models up by eighty per cent compared with the first half of last year, we’re looking forward to celebrating delivery of the 200,000th electrified BMW Group vehicle later this year,” he continued.

The BMW brand achieved its best-ever first half-year, topping the million mark for the first time ever by this point in the year. Global BMW sales totalled 1,038,030 units, an increase of 5.2% on the same period last year. Sales of BMW brand vehicles in June totalled 192,873, up 2.0% compared with the same month last year. A wide range of models throughout the range contributed to this growth. Sales of the BMW X1 increased 45.2% (136,748) in the first half-year while deliveries of the BMW X5 increased by 10.6% (89,958). BMW 1 Series sales grew by 6.5% (91,802) in the first half-year, while deliveries of the flagship BMW 7 Series increased during the same period by 26.9% (32,290).

June saw the arrival of the MINI Cooper S E Countryman ALL4 in the dealerships, the ninth electrified vehicle from the BMW Group which is available to purchase today. The popularity of the BMW Group’s innovative premium electrified vehiclescontinues to grow at a rapid rate: in the first six months of the year, a total of 42,573 BMW i, BMW iPerformance and MINI Electric vehicles were delivered to customers, an increase of 79.8% on the same period last year. First-half-year production of electrified vehicles totalled 51,725. The BMW Group is well on track to achieve its target of selling 100,000 electrified vehicles in 2017.

Sales of MINI brand vehicles achieved a new record for June with 39,443 units delivered to customers around the world, an increase of 3.0% compared with the same month last year. June rounded off the brand’s record first half year, with sales totalling 181,214 (+3.6%). “MINI continues to achieve sustainable growth in sales around the world,” said Peter Schwarzenbauer, Member of the BMW AG Board of Management responsible for MINI, Rolls-Royce and BMW Motorrad. “Sales of the new MINI Countryman are particularly pleasing and I’m delighted that with the launch in June of the MINI Cooper S E Countryman ALL4, electric mobility is now available on a large scale from the MINI brand. Customer interest in this car has been extremely high and I’m confident we will see continued growth across the brand in the second half of the year,” he added.

In the first half of 2017, the Goodwood-based Rolls-Royce brand delivered 1,575 (-6.5%) motor cars to customers. The same period in 2016 was particularly strong due to the popularity of the newly introduced Rolls-Royce Dawn. This base effect, and the absence from the market of the Phantom pending the introduction of the new Phantom later this year, account for the decrease in sales year-on-year. Despite considerable ongoing headwinds in the luxury sector in several regions, Rolls-Royce continues to strive for long-term sustainable growth.

BMW Motorrad achieved its best-ever June with a total of 17,260 motorcycles and maxi-scooters delivered to customers, an increase of 15.1% on the same month last year.

Those figures helped BMW Motorrad achieve a record first half-year with sales totalling 88,389 in the first six months of the year, up 9.5% on the same period last year.

BMW & MINI sales in the regions/markets at a glance

With the automotive market experiencing challenges in several significant markets, the BMW Group continues to follow its policy of balancing sales around the world to achieve sustainable, profitable growth.

Europe is the BMW Group’s most significant sales area and despite recent downturns in the region’s two largest markets, Germany and the UK, overall BMW Group sales for the first half of 2017 are up 2.2%.

BMW Group sales in Asia continue to achieve significant growth this year, driven mainly by China, where combined BMW and MINI deliveries are up 18.4% in the first half-year.

This strong increase is largely due to full availability of the BMW X1 and the popularity of the new BMW 1 Series sedan, a car designed exclusively for China.

BMW and MINI sales in the Americas continue to be affected by the decline in the overall automotive market in the USA. Meanwhile sales in other markets in the region maintain their positive growth, with BMW Group deliveries in Mexico and Latin America achieving a further double-digit increase.

McLaren announces profits, Turnover and income for the last business year, all is great.

McLaren Automotive accelerates to fourth consecutive year of profitability from record sales in 2016; confirms business plan on track with launch of new Super Series and Sports Series models

• Record 3,286 McLaren cars sold in 2016 drives 70% increase in profit before tax
• £65.8M operating profit for period is 180% gain on 2015 and fourth consecutive year of operating profit in only sixth year of selling cars
• Sales revenues of £649.8M in 2016, up by 44%
• Turnover of bespoke sales division, McLaren Special Operations, grows by 147% compared to 2015, with Aftersales revenue also increased, by 37%
•  Continued significant investment in Research and Development, at £129.1M (20% of turnover) in 2016
• Workforce grows by further 8%, to manage company growth and meet product demand
• Track22 Business Plan confirmed as on track to deliver ongoing success for McLaren Automotive as a manufacturer of luxury sportscars and supercars
• First car launched under Track22 was McLaren 720S, in March 2017; sold out for this year with 1,500 orders taken
• Second car is new McLaren 570S Spider, which makes world debut at Goodwood Festival of Speed as the first convertible in the McLaren Sports Series

British sportscar and supercar manufacturer, McLaren Automotive, today announces yet another record-breaking year in respect of vehicle sales and financial performance.

Profit before tax of £9.2M from an annual sales revenue of £649.8M in 2016 gave McLaren Automotive a fourth consecutive year of profitability in only six years, since start of sales in 2011.  This was an increase in profit before tax of 70% compared to the £5.4M reported in 2015.

Operating profit of £65.8M in 2016 was the company’s highest ever, standing at 10% of turnover and representing a 180% increase over 2015. The strong financial performance in 2016 was underpinned by record sales, with a total of 3,286 cars purchased; this was a 99% increase over 2015 and exceeded the company’s own expectations by almost 10%, with all geographic regions achieving sales growth. 

“The positive financial performance in 2016 was underpinned by a 44% increase in sales revenues and is further proof that McLaren Automotive’s growth plans are both achievable and sustainable,” said McLaren Automotive Chief Executive Officer, Mike Flewitt. ”Investment in R&D and future product during the period of £129.1M – 20% of turnover – reaffirms our commitment to the Track22 Business Plan that will produce 15 new models or derivatives by the end of 2022 and the focus going forwards will be on successfully delivering these new products and managing continued profitable growth.”

In its first full year of production, the Sports Series family accounted for 2,031 deliveries, the majority of which came from the recently-introduced McLaren 570GT and 570S models.  The Super Series also continued its success story thanks, in large part, to the McLaren 675LT Coupé and Spider models. Having both sold out in a matter of weeks, the limited production, even more driver-focused and higher-performance derivatives of the Super Series started production in mid-2015 but continued through 2016.  In total, 1,255 Super Series cars were sold in 2016.

In March 2017 the second-generation McLaren Super Series, the new McLaren 720S, was launched. The new car generated immediate customer interest and some 1,500 orders have been taken to date.  A new convertible Sports Series model, the 570S Spider, was announced on 14th June 2017 and makes its world debut this week in the UK at the Goodwood Festival of Speed.

“The McLaren Automotive business continues to perform strongly, with 2016 returning a fourth consecutive year of positive financial results,”  said McLaren Automotive Chief Financial Officer, Paul Buddin. ”Profit before tax was up by 70% to £9.2M, from our highest-ever operating profit of £65.8M, an increase of 180% over 2015. These results were driven by vehicle sales totalling 3,286 in 2016 – 99% up year-on-year and another record – and significant growth in revenues from McLaren Special Operations (MSO) and McLaren Automotive Aftersales operations.”

Sales increases in all regions

Geographically, in 2016 North America continued to be McLaren Automotive’s single largest market with deliveries of 1,139 cars, a 106% increase over 2015. Europe ended 2016 selling 996 cars in total, an increase of 153%, whilst the rapidly-developing market in China sold 228 cars in total.  The Asia Pacific region grew by 90% while the newly combined Middle East, Africa and Central and South America region grew by a notable 69%.  In addition, the global footprint of the McLaren retailer network continued apace in 2016, with new dealer facilities opened in Bristol (UK), Boston and Palm Beach (USA), Gold Coast (Australia) and Fukuoka in Japan.

In parallel with the vehicle sales success, McLaren Automotive also saw substantial growth in non-car-related activities.  McLaren Special Operations (MSO), the company’s bespoke division, posted an increase in revenue of 147%, while the Aftersales function recorded turnover growth of 37% for the year.

”2016 was an extraordinary year for McLaren Automotive, with a near-doubling of sales and the completion of our 10,000th car,”  commented McLaren Automotive Executive Director – Global Sales and Marketing, Jolyon Nash. “While we will never again see another jump in sales volume of this magnitude, the reception to the new 720S and the new 570S Spider has been incredibly positive and initial orders for both are beyond our expectations. Having the new, second-generation Super Series and the first-ever Sports Series convertible in showrooms will give every one of the 80 McLaren retailers worldwide the opportunity to contribute strongly to another record year for the McLaren Automotive business in 2017.”

On-going investment in Research & Development and new products

During 2016, McLaren Automotive invested £129.1M in new projects, across the Sports Series, Super Series and Ultimate Series product families.  The Track22 Business Plan sees McLaren investing an industry-leading percentage of turnover (20% in 2016) in R&D activities over the period of the plan. This will take the company towards its objective of producing more than 4,500 vehicles annually by the end of 2022, with at least 50% of these cars featuring hybrid powertrain technology.  The Business Plan also includes the development of a fully-electric powertrain for a concept car to evaluate its possible use in a future Ultimate Series. In 2016, the early prototype stages of the development work commenced.

McLaren Automotive is also investing in senior management infrastructure to support its product development plans.  Dr Jens Ludmann was announced in May 2017 as the company’s new Chief Operating Officer.  Reporting to the CEO, Dr Ludmann will oversee the launch of 13 new models or derivatives during the next five years and focus on further developing internal working processes, relationships and disciplines across Product Development, Purchasing, Supplier Quality Assurance and Manufacturing.

A year of transition for the McLaren Production Centre

The McLaren Production Centre (MPC), the sole location for the hand-assembly of McLaren Automotive sportscars and supercars, underwent signficant operational changes during 2016 calendar year.  A second shift was implemented in January to meet demand for Sports Series models, leading to the creation of 250 new jobs within the manufacturing, quality and logistics departments. This strategic development took capacity at the MPC from 10 cars a day to 20, supporting annual production in the region of 5,000 units.

McLaren Composites Technology Centre to bring chassis production in-house

McLaren Automotive announced in February 2017 that it will construct a new Composites Technology Centre (MCTC) that will be responsible for the development and manufacture of the Monocell and Monocage carbon fibre chassis used in future McLaren models.  Located in Sheffield, UK, the MCTC project is a partnership between McLaren Automotive, the University of Sheffield’s Advanced Manufacturing Research Centre (AMRC) and Sheffield City Council. Combined investment of approaching £50M will create the facility and more than 200 jobs.  When commissioned and running at full production from 2020, the MCTC is targeted to deliver cost savings of around £10M annually compared to today and the chassis supply will increase average percentage (by value) of a McLaren car sourced in the UK by around 8%, from its current average of around 50% (depending on model).

		2016	2015	% change
Deliveries to customers	Cars	3,286	1,654	99%
Employed	People	1,606	1,492	8%
Sales revenue	Million GBP	649.8	450.6	44%
Operating profit	Million GBP	65.8	23.5	180%
Operating profit as % of sales		10%	5%
Profit before tax	Million GBP	9.2	5.4	70%
Profit after tax	Million GBP	7.3	2.8	161%
Capitalised development costs	Million GBP	129.1	123.9	4%
Capitalised investments as a % of T/O		20%	27%

Audi will embrace the future with two advanced new Q SUVs and three e-tron battery electric vehicles

Audi will embrace the future with two advanced new Q SUVs and three e-tron battery electric vehicles while also replacing five ‘core’ models

• New model generations in five core series, expansion of SUV family, extensive electrification
• Technology for driverless city cars ready for an initial small series by 2021

Audi is facing up to the challenges of the present day but also confidently embracing the future with ambitious plans. Following a year that was impacted by the diesel crisis, the company intends to continue pushing forward with its strategic transformation, the details of which have just been outlined to shareholders by the Board of Management at its Annual General Meeting in Neckarsulm, Germany.

“We are rejuvenating our model portfolio enormously and will renew five existing core model series by mid-2018,” stated Rupert Stadler, Chairman of the Board of Management of AUDI AG. 

PLEASE ACCEPT THE PICTURES AS DESIGN CONCEPTS AND NOT AS REAL CARS

“In addition, we will expand our successful Q family by 2019 with two new concepts – the Audi Q8 and the Audi Q4 – and we will launch our battery-electric e-tron models.” Audi plans to launch three new electric models by 2020, after which the brand will gradually electrify models in each of its core series.

The focus this year is on top-end models with the new generations of the Audi A8 and Audi A7. The premium manufacturer will unveil the A8 at the first Audi Summit to be held in Barcelona on July 11. With this new event concept, the Ingolstadt-based company will create an exclusive presentation format all around the Four Rings. “There, we will show the world everything that defines Vorsprung durch Technik and our brand,” explained Stadler.

Over 30% fully or partially electric sales by 2025

Audi is systematically utilising Group synergies in order to implement topics of the future even faster and more efficiently. In April, the brand agreed on new development cooperation with Porsche for future vehicle architectures. Part of the cooperation is the development of shared premium architecture for electrification – an effective lever to enhance the competitiveness of electric cars. By 2025, Audi intends to achieve a proportion of one third fully or partially electric models in its unit sales.

In addition to the traditional car business, the premium brand will expand its range of digital services in the future. With myAudi, the company aims to create a consistent entry into the brand’s digital world and establish a platform for a wide range of online services, which will be open also for third-party providers to offer services. Audi is also expanding its mobility services for urban areas and intends to offer them in more than 15 markets worldwide by the end of this decade.

With a subsidiary founded in March 2017, Audi will take over the leading role within the Volkswagen Group in the development of autonomous driving. Autonomous Intelligent Driving GmbH is working on the technology for driverless vehicles in urban environments, which will be applicable in models of various brands. The technology is to be ready for application in a first small series of cars early in the next decade.

“We are financing our transformation out of our own resources,” said Axel Strotbek, Member of the Board of Management of AUDI AG for Finance, IT and Integrity. “Our business operations are robust also in the currently challenging situation. On the side of expenditure and investment, our ‘Speed up!’ program is helping us to achieve a high level of efficiency and thus a maximum focus on the topics of the future.”

In the first quarter of 2017, the Audi Group achieved an operating profit of more than €1.2 billion. With an operating return on sales of 8.7 percent, the company clearly met its profitability target. The net cash flow increased to more than €1.5 billion.

In full-year 2017, the company intends to slightly increase deliveries of Audi-brand cars compared with the number of 1,867,738 automobiles delivered in 2016. Revenue should also slightly surpass the prior-year level of €59.3 billion. In terms of operating return on sales, following the 5.1 percent of last year, Audi now plans to achieve its strategic target corridor of 8 to 10 percent once again. In 2016, operating profit was reduced by €1.8 billion and operating return on sales by 3.1 percentage points due to special items in connection with the diesel crisis and Takata airbags.

Groupe Renault moves forward with a massive increase in group revenues helped by a 10% growth in sales Units.

• Group revenues totaled €13,129 million in first quarter 2017 (€12,560 million excluding AVTOVAZ). The 25.2% increase (19.7% excluding AVTOVAZ) resulted primarily from an increase in the Group’s brand volume and sales to partners.
• First quarter sales rose by 15.8% to 873,678 vehicles (at constant scope, including Lada) in a market that grew 4%.
• Sales volumes and market share increased in all regions. The Renault and Dacia brands set new sales records for a first quarter.
• In Europe, Group registrations rose 10% in a market up 8%, driven by new models and the confirmation of the good results of Kadjar, Clio 4, Captur and Duster. 
• UK is Groupe Renault’s fifth biggest market globally in Q1 2017
• Outside Europe, the Group posted a 100% increase in sales in Asia-Pacific and a 31% increase in the Africa-Middle East-India Region.
• The Group is confirming its guidance for the year.

Sales Results: first quarter highlights

Groupe Renault (including Lada) worldwide registrations (Passenger Car + LCV) increased by 15.8% in a market up 4%. The Group’s share of the world market now stands at 3.8%, up 0.4 points on 2016. The Renault and Dacia brands set new sales records for a first quarter. Renault Samsung Motors sales increased by 56.3% and those of Lada by 7%.

In Europe, the Group’s share of the PC + LCV market increased 0.2 points to 10.1%. Sales grew 10% to 478,706 vehicles. 

The Renault brand continued to progress, with a 10.1% rise in registrations. Market share came out at 7.7%, up 0.1 points. Renault notably benefited from the complete renewal in 2016 of the Megane family car line-up. 

Electric vehicle sales increased by 46% to nearly 10,000 units (excluding Twizy) thanks to the success of New ZOE with an official range of 250 miles (NEDC). Sales of ZOE rose 57% and reinforced the Group’s leadership with a 28% share of the electric vehicle market. 

The Dacia brand posted a sales record for a first quarter with 112,457 registrations and a 2.4% share of the market. This 9.5% growth resulted from the performance of New Sandero – the facelifted model launched in late 2016.

In France, Groupe Renault benefited from the growth of the market with a 5.6% increase in registrations. The Group placed five vehicles in the top ten best-selling passenger cars (including the top-seller, Clio) and occupied the top four positions in the LCV top ten. The Dacia brand was buoyed by the success of Sandero (the leader in sales to retail customers).

In the UK, Groupe Renault has experienced unprecedented growth over the last five years. This growth has continued in 2017 with 39,498 Groupe Renault vehicles being sold in Q1 – up 3.8% on Q1 2016. The UK is Groupe Renault’s fifth biggest market worldwide.

Outside Europe, all the Regions increased their sales volumes and market share.

Groupe Renault strengthened its positions with the success of its range: Kwid in India, QM6 and SM6 in South Korea, Kaptur in Russia, Koleos in China, Megane Sedan in Turkey, and Captur in the Americas.

In Africa-Middle East-India, Group registrations rose 30.9% for a market share of 6% (up 1.4 points).

Sales in Iran rose sharply (up 161.5%) for a market share of 9%, up 4.9 points, thanks to the success of Tondar and Sandero.

In India, Renault continued to rank as the number-one European brand with a 3.6% share of the market and a 9.9% increase in sales. Kwid registrations reached nearly 27,000.

In North Africa, the Group took a 41.5% share of the market, up 8.3 points with a 13.4% increase in sales.

In Eurasia, registrations increased by 6.3% in a market down 0.5%. The market share of Groupe Renault, now including the Lada brand, rose 1.5 points to 24.1%, notably thanks to a strong momentum in Russia.

In a Russian market that grew slightly (+1%) for the first time in four years, the Group increased its sales by 9.2% (including Lada).

The Renault brand took a 8.1% share of the market, up 0.8 points. Registrations of Kaptur, launched in June 2016, came to over 6,000 for the quarter.

Lada sales volumes rose 8% for a market share of 19.1% (up 1.2 points) thanks to the success of the new Vesta and Xray models. 

With the consolidation of Lada sales volumes, Russia has become the Group’s number-two market.

In Turkey, sales increased 0.8% in a market down 7.4%. The Group posted a 19% share of the market, up 1.5 points. New Mégane Sedan, awarded “Car of the Year”, is off to a successful start with over 6,500 registrations.

In the Asia-Pacific Region, registrations were up 99.7% in a market up 4.6%. 

In China, Renault sold nearly 18,000 vehicles (compared with 3,400 in first-quarter 2016), including 10,000 New Koleos, launched at end-2016 and produced locally at a new plant in Wuhan.

Renault Samsung Motors posted a growth of 56.4% in a South Korean market up 0.9%, for a market share of 6.2%, up 2.2 points, driven by the success of the latest product launches (SM6 and QM6).

In the Americas region, sales increased 19% in a market up 9%, for a market share of 6.3%, up 0.5 points. The success of Sandero, Logan and Duster Oroch models was confirmed.

Groupe Renault continue to take full advantage of the recovery in the Argentinean market, with an 87.2% increase in registrations in a market up 42.8%. Market share rose by 3.1 points to 13.1%. Renault is fully benefitting from the local production of Sandero and Logan since end-2016. The market in Brazil has stabilized (down 1.2%) and the Group maintained its market share at 6.8%.

First quarter revenues by operating sector

Group revenues came to €13,129 million in first quarter 2017, up 25.2%. Excluding the impact of the consolidation of AVTOVAZ, Group revenues increased by 19.7% to €12,560 million (up 18.4% at constant exchange rates).

Automotive excluding AVTOVAZ revenues totaled €11,939 million, up 20.1%, mainly thanks to growth in sales volumes (up 9.2 points). The increase in sales to partners contributed 3.5 points to this growth. The performance reflects the strong momentum in our CKD1 activity in Iran and China and in the sales of vehicles assembled in Europe (notably with the start of Nissan Micra production). The price effect (+2.4 points) benefited primarily from recent launches. The currency effect was positive at 1.3 points, mainly owing to the strengthening of the Russian ruble and Brazilian real, despite the negative impact of the British pound.

Sales Financing (RCI Banque) posted revenues of €621 million in the first quarter, up 13.5% on 2016. The number of new financing contracts increased by 21.4%. Average performing assets rose 21.9% to €37.9 billion. 

Outlook for 2017

In 2017, the global market is expected to a record growth of 1.5% to 2.5% (versus 1.5% to 2% previously). The European market is still expected to increase by 2% this year, as is the French market. 

Outside Europe, the Russian market might increase by up to 5% (versus stable previously), whereas the Brazilian market should remain stable. China (+5%) and India (+8%) are expected to continue their growth momentum. 

With this context, and following the consolidation of AVTOVAZ, Groupe Renault is confirming its guidance:

• increase Group revenues, beyond the impact of AVTOVAZ (at constant exchange rates)*,
• increase Group operating profit in euros*,
• generate a positive automotive operational free cash flow.

* compared with 2016 Groupe Renault published results

Groupe Renault consolidated revenues

(€ million)	2017	2016	Change
			2017/2016
Q1
Automotive excluding AVTOVAZ	11,939	9,942	+20.1%
Sales Financing	621	547	+13.5%
AVTOVAZ	750	-	-
AVTOVAZ eliminations	-181	-	-
Total	13,129	10,489	+25.2%
Excluding the impact of AVTOVAZ consolidation	12,560	10,489	+19.7%

1CKD: Complete Knock Down