Renault Reports First Net Losses In Decade For 2019
French carmaker Renault said Friday it went into the red last year for the first time in a decade on lower sales and a falling contribution from its Japanese partner Nissan
Paris, (UrduPoint / Pakistan Point News - 14th Feb, 2020 ) :French carmaker Renault said Friday it went into the red last year for the first time in a decade on lower sales and a falling contribution from its Japanese partner Nissan.
It added the outlook for 2020 was bleak with a fresh fall in operational profitability expected and did not rule out possible plant closures.
Last year saw group operating margin drop from 6.3 percent to 4.8 percent, though Renault stated that it "achieved its targets, revised in October," despite "a troubled context." The auto giant in 2019 marked its first full year without former emblematic CEO Carlos Ghosn, arrested in Japan in November 2018 over allegations of financial misconduct, including under reporting salary and misuse of company assets at Renault partner Nissan.
Delbos said she did not rule out potential site closures in the teeth of current difficulties.
"We have no taboos and we exclude nothing," stated Delbos in allusion to a three-year programme of two billion euros of savings cuts.
"We are going to reassess all our cost types and charges ... some of these costs will imply restructuring charges," added Delbos, noting the group was in the throes of a strategic review of its activities.
- Ghosn fallout - Renault also took a hit from a decline in the financial contribution of a likewise struggling Nissan, in which it has a 43-percent stake, coming in at 242 million euros, down from 1.51 billion in 2018.
Friday's results marked the first time Renault -- which said it would slash its dividend by more than two thirds to 1.10 euros a share -- had plunged into the red since 2009 in the throes of the financial crisis when it made a 3.1 billion euro loss.
Last year saw further upheavel, post-Ghosn, in the Renault hierarchy as director general Thierry Bollore was forced out.
Delbos took the position on an interim basis but will give way to Italian Luca de Meo, most recently boss at Seat, Volkswagen's Spanish subsidiary.