Renault group: 2019 closes at a loss

DIFFICULT YEAR – After the arrest in November 2018 for the former world number one Carlos Ghosn, the Renault Group has been going through a difficult period of reorganization, and this seems to have weighed on the budget of 2019, just published by the French group, which includes the brands Renault, Dacia, Alpine, Avtovaz and Samsung Motors.

DOWN THE GAIN – In 2019, the Renault Group has sold 3.8 million cars, 3.4% less in 2018, and generated a turnover of 55,537 billion, lower by 3.2% compared to 57,419 billion in 2018. The gross profit is the contract of 882 million euro, passing from 2,987 billion at 2,105 billion, but it is also negative, the gross margin per car sold: was 6.3% in 2018, was reduced to 4.8% in 2019.

THE NISSAN HAS NOT HELPED – The most disappointing result is for the net gain, the past 3,302 billion in 2018 at a loss of 141 million last year. To have more influence on the useful is also the negative result of the Nissan, which the French carmaker owns a 43%: in 2018, the Nissan had “injected” in the Group the Renault 1.5 billion euros, against 242 million in 2019.

NO RECOVERY – The situation is not expected to improve in 2020, because the Renault Group estimates a turnover in line with the 2019 and a gross margin between 3% and 4% for cars sold. It will be the task of the new ceo, the Italian Luca De Meo (operational from 1 of July), reverse course and improve the situation of the French giant.