Renault hit by historic loss

31 July, 2020 12:00 AM printer

PARIS: French automaker Renault reported its biggest half-year loss ever on Thursday, with revenue slashed by a third as dealerships worldwide were emptied by the coronavirus crisis.

The dire results underscored the challenges facing CEO Luca de Meo, who was brought in this month to revamp a company reeling from strategic missteps and the ousting of former boss Carlos Ghosn last year on financial misconduct charges, reports AFP.

Net losses reached 7.3 billion euros ($8.6 billion), compared with a profit of 970 million euros in the same period last year. More than half the loss was due to Renault’s 43 percent stake in its Japanese partner Nissan, which also reported this week a huge hit from the COVID-19 pandemic.

Revenues plunged 34 percent to 18.4 billion euros as demand withered for nearly all its brands in all its markets, including the low-cost Dacia models that have been hugely successful in recent years. The half-year loss follows the first annual loss in Renault’s history last year, when it was rocked by Ghosn’s 2018 arrest in Tokyo on suspicions he under-reported his income while chairman at Nissan.