Paris: Renault SA suffered a record loss in the first half when the French car manufacturer was dealing with a sharp drop in the market and the dire effects of his wife Nissan Motor Co.
The net loss of 7.290 million euros ($8.58 billion) underscores the demanding situations facing the automotive, which is cutting prices and seeking to restore relations with its spouse in the Japanese alliance. He refrained from offering monetary direction for the year, to say he is on the right track through fee savings.
“Although the stage is unprecedented, it is not final,” new general manager Luca de Meo, who took the reins this month, said in a statement. “I have each and every confidant in the group’s ability to recover.”
Renault’s vehicle sales fell more than a third of the period, when showrooms and factories were closed for weeks due to the coronavirus pandemic. The development losses of Nissan, the company in which it has a 43% stake, increase its pain.
The Japanese automaker has to give up paying a dividend, denying Renault a payment it has long relied on to increase profits.
Nissan’s functionality reduced Renault’s profit by 4.8 billion euros in the first quarter.
Renault unveiled a plan in May to cut around 14,600 international tasks and reduce production capacity by almost a fifth in an effort to reduce prices by more than 2 billion euros, of which six hundred million euros are planned for this year. De Meo will oversee politically sensitive task cuts in France and a strategy to recalibrate the company’s brands and range of styles.
The company reported an operational loss of the organization of 2 billion euros in the first half, compared to the profits of 1.52 billion euros the previous year and said that the intake of automotive money 6.4 billion euros.
Renault turned to its top hard shareholder, the French state, to help it in the fitness crisis, through the acceptance of a five billion euro line of credit backed by the state. At the end of June, the car manufacturer said it had 16.8 billion euros in cash, up from 10.3 billion euros on 30 March.
This week, the company unveiled a high-level designer from its rival PSA Group, and Renault’s deputy executive, Clotilde Delbos, cited a successful review at car manufacturer Peugeot and Citroen as an explanation of why to focus on profitability than volume. Investors praised PSA for gathering its monetary outlook and reporting a profit for the first half on July 28.
Renault and Nissan are regrouping after two decades of competitive expansion, former alliance leader Carlos Ghosn. His arrest in 2018 in Japan has tested the company’s already feeble appointments and triggered an era of executive turmoil.
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