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Speaker 1: Bloomberg Audio Studios, podcasts, radio news.

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Speaker 2: The chief executive after he is Luca DeMeo, who joins

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Speaker 2: us from New Paris. Thank you, mister the Meo for

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Speaker 2: joining us. You say you have a solid margin. Again,

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Speaker 2: we have seen concerns about demand for electric car vehicles

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Speaker 2: actually slowing. How much do you expect that to slow down?

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Speaker 1: By look, I think that if you look at the thing,

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Speaker 1: long term, TV will be a dominant technology in Europe

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Speaker 1: also because of regulation, especially cafigure regulation that people tend

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Speaker 1: to forget where you need to achieve a very.

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Speaker 3: Low level of average fleet consumption.

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Speaker 1: So we might have some bumps on the roads as

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Speaker 1: we are experienced right now, but long term.

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Speaker 3: This will fly. That's that's for sure.

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Speaker 1: We think twenty twenty four is probably a bit trickier,

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Speaker 1: but twenty twenty five you will see again picking up

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Speaker 1: because everybody will have to match the targets in twenty

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Speaker 1: twenty five.

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Speaker 3: So that's my view.

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Speaker 1: Other thing we shouldn't doubt about the fact that TV

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Speaker 1: will be a dominant technology in you maybe not the

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Speaker 1: only one, okay, but it will be very very strong.

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Speaker 3: I think.

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Speaker 2: Is there anything actually that would help move the needle

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Speaker 2: to try and reignite demand in the shorter term.

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Speaker 1: Look, I think depends on the I think one of

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Speaker 1: the things we are doing this series that we're introducing

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Speaker 1: new cars. Normally, product offer always helps, especially because we

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Speaker 1: are bringing a small car, next generation TV platform. So

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Speaker 1: these are cars that are much more affordable than what

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Speaker 1: we've seen so far. So normally it should boost volume,

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Speaker 1: at least in our case. So we think we're going

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Speaker 1: to be, even in complicated times, relatively anti cyclicle from

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Speaker 1: this respect. So and then we will have to see

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Speaker 1: how you know, different governments are subsidizing. We see, for

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Speaker 1: example Germany that pulled off the thing, but on the

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Speaker 1: other side, other countries are.

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Speaker 3: Like Italy or France are investing into the thing. So on.

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Speaker 1: In all, we I believe that we will continue to grow.

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Speaker 1: In fact, in a few years we went from zero

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Speaker 1: to sixteen percent of TV mix in Europe. No technology

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Speaker 1: has done that before in the history of automotive so fast.

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Speaker 1: So we shouldn't only look at the outside of the

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Speaker 1: you know, the dark side of the bank.

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Speaker 2: Yeah, talking about half site. So you abandoned the IPO

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Speaker 2: of your EV unit. Do you think that this could

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Speaker 2: again once again be iPod or would you change your

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Speaker 2: mind in the next two years.

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Speaker 1: Look, right now, we are focusing on trying to make

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Speaker 1: sure that everything we promised on the capital market in

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Speaker 1: November would be delivered. Right, So cost reduction, massive cost reduction,

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Speaker 1: very efficient manufacturing operation, launching the products that we want

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Speaker 1: to launch, six or seven cars form pairs. So I

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Speaker 1: think that's the fact that we're not busy with the

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Speaker 1: IPO preparation is actually giving us a little bit more

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Speaker 1: time to focus on the job that has to be done.

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Speaker 1: So we're pretty cool and relaxed. At the end of

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Speaker 1: the day, you've seen the results that I don't know

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Speaker 1: as you know, as delivered. So we have all the

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Speaker 1: money we need to finance, you know, the umpire, the

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Speaker 1: umpair rump up. So we are okay. I think we

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Speaker 1: made a decision because the mood is not the right

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Speaker 1: one at this moment in the markets, and I think

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Speaker 1: it's you know, very wise, cool headed decision and let's

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Speaker 1: see what happens. The most important thing is that we

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Speaker 1: can bring you know, profitable and good cars for the customers,

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Speaker 1: and we will.

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Speaker 2: When are you planning and you will when are you

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Speaker 2: planning to sell the next trunch of Nissan shares. Does

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Speaker 2: that need to be sooner because you're not IPO and

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Speaker 2: on pair?

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Speaker 1: No, no, no, no, I think I mean the process started,

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Speaker 1: like we already sold five percent last year and then

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Speaker 1: we will look at the right moment. Condition We tried

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Speaker 1: to do it in a coordinated way with our friends

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Speaker 1: and colleagues from from Nissan. So the process that I

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Speaker 1: cannot fix a date right now, but I can only

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Speaker 1: confirm that you know, gradually we will you know, go

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Speaker 1: down into the thing as we promised, and we did

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Speaker 1: it already, so it shows that we are serious about

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Speaker 1: monetizing that that you know, those those shares.

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Speaker 2: But we can expect something the next couple of quotures

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Speaker 2: without having a specific date. Can you give us more

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Speaker 2: more idea of how you think about the timeline?

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Speaker 1: Yeah, I mean it's a kind of a sensitive information

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Speaker 1: because then it gets into you know, things that we

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Speaker 1: have to share with the auditors, et cetera, et cetera.

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Speaker 1: So leave us you know, the freedom to decide when

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Speaker 1: to do it conditions. But the process started, you know,

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Speaker 1: we pull last year and for sure there would be

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Speaker 1: something you know coming up relatively soon on that, but

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Speaker 1: we have to connect with demos.

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Speaker 2: Your envision is to create an air vitus. Can you

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Speaker 2: update us on speaking to some of your competitors to

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Speaker 2: actually share this platform. Is Folkswagen on board?

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Speaker 3: Look at the we have. I think I've always done

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Speaker 3: small cars. Now.

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Speaker 1: I like small cars, of course, I like also big

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Speaker 1: cars and sports cars and all kinds of them. But

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Speaker 1: I think that we've been a little bit like Under,

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Speaker 1: you know, under investing in Europe for a number of

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Speaker 1: reasons on cars that have compact that can be very

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Speaker 1: useful in you know, urban environments. So the market and

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Speaker 1: the what we call technically a segment was divided by

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Speaker 1: three in the last fifteen years. I think, you know,

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Speaker 1: there's no secret if you want to lower the impact

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Speaker 1: of automotive, you need to also use small cars, especially

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Speaker 1: in dense urban environments. So what we're trying to do

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Speaker 1: is to bring you know, technology platform and the and

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Speaker 1: the concept project where we can sell a car for

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Speaker 1: below twenty thousand, an eedy car for twenty thousand euro

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Speaker 1: less and make money. And there are not many initiatives

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Speaker 1: like this, so this thing becomes interesting to other competitors

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Speaker 1: that might want to jump on the opportunity, and we

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Speaker 1: are giving that to others. So we're discussing you know,

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Speaker 1: left and right. I cannot confirm you any you know

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Speaker 1: room or on the thing, but we are very open

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Speaker 1: to share you know, that kind of investment because it's

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Speaker 1: very difficult to make money with small cars and we're

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Speaker 1: trying to find a.

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Speaker 3: Way because it's good for the environment.

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Speaker 2: And the chief executive Silantees also told Bloomberg that actually

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Speaker 2: he's looking at pursuing possible m and a possible consolidation

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Speaker 2: with friendly automakers. Do you foresee a future where this

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Speaker 2: would make sense, a merger between Reno and Stilantes.

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Speaker 1: Look, I think I think that we are focused on

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Speaker 1: other things we're trying to be and I don't think

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Speaker 1: that it is if you want only one received for success.

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Speaker 1: I mean it could be consolidation, could be as we

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Speaker 1: are trying to do, to invest in innovation, to define

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Speaker 1: and to develop a company that is more agile, more

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Speaker 1: oriented to innovation, more sticking to you know, the value

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Speaker 1: change that might grow into the future.

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Speaker 3: That has been our statlig so far and it proves

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Speaker 3: to work, right.

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Speaker 1: So so I'm focusing on trying to you know, move

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Speaker 1: Reno into the future and make sure that Renault will

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Speaker 1: more and more depend from businesses that are new businesses

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Speaker 1: that have growth and you know, structural double digit profitability

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Speaker 1: and as I said, so far, so good, and that's

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Speaker 1: that's what we're interesting. It doesn't mean that consolidation in

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Speaker 1: general could not be one way for OEMs to you.

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Speaker 3: Know, to compete.

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Speaker 1: For example, we did it in the case of course,

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Speaker 1: together with Gilly on the eyes let's say technology, so

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Speaker 1: in the combustion engine technologry, because this is a mature technology.

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Speaker 1: So it makes sense to put things together, to put

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Speaker 1: efforts and assets together, to find DVD and on innovative things.

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Speaker 3: I mean, mister Jail, your validation and focus.

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Speaker 2: Yeah, you're considered one of you know, the most able

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Speaker 2: managers to turn companies around. But if there's a consolidation

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Speaker 2: phase and RENO is not part of it, what happens

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Speaker 2: to the company in ten years? Do you need to

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Speaker 2: get bigger? Do you need to merge if competitors are merging.

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Speaker 1: Well, look, we are making much more money selling much

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Speaker 1: less car than use before.

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Speaker 3: So it doesn't mean that.

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Speaker 1: It doesn't mean that being bigger makes you, you know, stronger.

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Speaker 1: This is what I think right of course, size in

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Speaker 1: a very capital intensive sector like automotive is a necessary condition,

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Speaker 1: but I'm not sure it's the you know, sufficient right

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Speaker 1: now in a time where volatility is dominating you know, demands,

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Speaker 1: and where technology is very evolution so I think you

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Speaker 1: also do that right. And I've been heard hearing and

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Speaker 1: practicing that kind of mantra that consolidation would be the

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Speaker 1: ultimate solution for everything for thirty years. So I'm thirty

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Speaker 1: years into this sector, you know, and in fact, what

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Speaker 1: you see everybody was saying twenty years ago, thirty years ago,

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Speaker 1: there will be only three groups, five groups surviving in

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Speaker 1: the world. And then in the meantime you have one

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Speaker 1: hundred and fifty companies that emerge in China. So when

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Speaker 1: you look at the list of companies creating in the

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Speaker 1: sector is actually much.

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Speaker 3: Longer than it used to be. So always right,