Renault: net losses of 8 billion euros in 2020! – EconomyMorning

Renault’s results for 2020 reflect the terrible year suffered by the entire automotive industry. The manufacturer has lost 8 billion euros! But there are reasons to be hopeful.

The epidemic crisis crippled much of the activity in Renault group factories last year, while dealerships had to close for several weeks. Under these conditions, impossible to achieve a miracle: the car manufacturer only sold 2.95 million vehicles, a volume down 21% compared to the previous year. Turnover was down 21.7% to 43.5 billion euros. Renault posted a record net loss of 8 billion euros, unprecedented. In 2009, at the height of the financial crisis, the company’s losses were “only” 3 billion euros…

Terrible year for Renault

Renault pays for the poor results of its partner Nissan, which weighed 5 billion euros in the annual accounts of the French group. The margin was -337 million. In this context, it is difficult to be optimistic, but this is the position of Luca de Meo, managing director of the company since last July. ” After a first semester impacted by Covid-19, the Group significantly improved its performance in the second semester “, He explains in the press release. The last six months of the year have indeed shown the best for the company, with sales down 8.9% and net losses of 660 million euros. The margin returned to the green at 3.5%.

Second semester rebound

Luca de Meo presented his recovery plan, which includes not only savings of around 2 billion euros, but also strategic changes: more profitable models sold in more profitable markets. ” Priority is given to profitability and cash generation, as announced in our Renaulution strategic plan », Indicates the leader. The year 2021 promises to be still difficult, however, between a continuing health crisis and difficulties in the supply of electronic components.

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