Renault posts massive losses as problems mount

0
113


PARIS – French automaker Renault reported a massive loss of 7.4 billion euros ($ 8.5 billion) in the first half of the year as the collapse in global car sales due to of the pandemic aggravated the problems already underway at the manufacturer.

Renault’s loss compared to a profit of around 1 billion euros a year earlier. Her 35% drop in sales during the period was worse than the overall drop she estimated at 28%.

“The health crisis we are currently experiencing has had a massive impact on the group’s first half results and added to our pre-existing difficulties”, declared Clotilde Delbos, Deputy Managing Director.

Due to uncertainties surrounding the coronavirus pandemic, the company has given no indication of its annual results.

Renault is in partnership with the Japanese Nissan, which is also experiencing financial difficulties. Nissan has announced the closure of factories in Spain and Indonesia and the two companies are working to end the perceived damage to their brand and questions over their management that have been triggered by the arrest of allegations of financial misconduct in 2018 from their former star leader, Carlos Ghosn.

Renault shares plunged nearly 9% on news of its loss.



LEAVE A REPLY

Please enter your comment!
Please enter your name here