Despite all the gloom and doom in Europe, French automaker, Renault, posted a respectable first-half performance that beats the forecast by analysts. Earnings before interest, taxes and one-time items dropped 23 percent to 482 million euros from 630 million euros a year ago. This figure beats the average 363 million euros estimated by seven analysts surveyed by Bloomberg.

The better-than-expected performance is supported by the increased sales in Latin America and Russia. Renault sales in Latin America rose 20 percent to 215,149 vehicles, while deliveries in Russia and other former Soviet states jumped 29 percent to 103,926.

"Management has a very good focus on all the important issues," said Kristina Church, a Barclays analyst in London who awarded an 'overweight rating' on Renault’s share. "They've managed to keep cash burn to a minimum and they're not trying to push volumes too much through discounts. In a difficult and uncertain environment, Renault remains on track to meet its 2012 objective of positive automotive operational free cash flow," said Renault's Chief Executive Officer, Carlos Ghosn, in a statement.

Renault's balance sheet looks even more impressive when compared to fellow French carmaker, PSA Peugeot Citroen, which reported a first-half loss of 662 million euros with plans to cut 8,000 jobs and close a factory on the outskirts of Paris.

I am confident that the funky new Clio hatchback will be well-received by consumers and further contribute to Renault’s overall sales.

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