Renault – In the first half of a record loss of € 7.3 billion

The first half of 2020 will be, probably, long remembered in Boulogne-Billancourt, the historic seat of the Renault. The crisis of the coronavirus and the strong difficulties of the allied japanese Nissan have, in fact, produced a huge hole in the budget of the Régie, with a net loss to a record level of nearly 7.3 billion euro.

The impact of the crisis Nissan. A red of such magnitude that not ago other that to confirm a situation of crisis that has already led the manufacturer transalpine to close the budget of 2019 , with the first loss in the last decade. At least two years, the problem is always the same: the Nissan no longer provides that the financial contribution which has several times represented a saving for the accounts of the Renault. Now intervened in the pandemic to accentuate critical issues that will be up to Luca De Meo resolve in his role as ceo. Of course much depends on the Home of Yokohama, which is only in the first half of the year produced a negative impact of well-4,82 billion euros.

Zero profitability, and burns cash. The Renault group has of course also paid the consequences of coronavirus. The sales, within a global market, down 28.3% compared to the corresponding period of last year, are down 34.9 percent to about 1,26 million units, while revenues have suffered a decline of 34.3%, stopping to € 18.4 billion. The public health crisis, with an impact quantified at about 1.8 billion euro, has pushed the gross operating margin was negative 1.2 billion (compared to 1.65 billion in the first half of 2019) and the operating result in the loss of two billion (profit of 1.5 billion a year ago). The net result, for the absence of the contribution of Nissan and the impact of the emergency Covid-19, is then passed from a profit of 970 million, to a loss of 7,292 billion. Further evidence of the difficulty of the company of Boulogne-Billancourt is represented by the cash flows from the assets of the car manufacturers: in the half-year were negative for 6,375 billion (-716 million a year ago). The net financial position has a solid level of liquidity, thanks to the salvific intervention of the French State: the cash reserves amounted to 16.8 billion, up from eur 10.3 billion at march 30, also due to the effect of the loan from five billion euros paid by the banks, and, accompanied by state guarantees.

The confidence of De Meo. Despite the negative data, De Meo has, however, expressed optimism about the future. “The situation, as it is unprecedented, it is not definitive. With all of the officers and employees of the group, we’re dedicating ourselves completely to the correction of the situation through a strict discipline that will go beyond the reduction of our fixed costs,” said the Italian manager. “Preparing for the future also means building our development strategy, we’re actively working on,” added De Meo, referring to the upcoming presentation of the new plan products. “I have full confidence in the resilience of the group”. Clotilde Delbos, the deputy managing director which has held the reins of Renault before the arrival of De Meo, has put then in the clear as “the health crisis through which we are passing has had a huge impact on the results of the first half of the group and has added to our pre-existing difficulties. The commitment of all our employees has enabled us to deal with this situation. This continuous commitment, the plan of reduction of costs, our cash reserves and, of course, the arrival of our new ceo, make me feel secure that we will be able to reverse the course as quickly as possible”.

Source: Quattroruote.en – Edited by Anthon K.