Renault : record loss of $ 7.3 billion, because of Nissan and the health crisis

that has Already been weakened by the pandemic of sars coronavirus, the group announced in late may the removal of 15 000 jobs in the world.

The French car manufacturer Renault has suffered in the first half net loss the heaviest in its history at eur 7.3 billion, leaded by its japanese partner Nissan and the health crisis, he announced Thursday in a press release.

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The group, already in difficulty before the outbreak of coronavirus, which was announced at the end of may, 15,000 jobs in the world, has indicated that he was relinquishing any forecast of financial result for 2020 in the face of uncertainties related to the pandemic Covid-19.

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"The situation is unprecedented, it is not without appeal," commented the new ceo, Luca de Meo, who took office at the beginning of the month. "I have every confidence in the ability of the group to bounce", he added, quoted in the press release. "The health crisis that we currently live in has heavily impacted the group's results for the first half and was added to our existing difficulties," explained the deputy director-general Clotilde Delbos.

The historical loss is mainly explained by the contribution of automaker Nissan, in which Renault owns 43% of the share capital. This participation has penalized the group for the diamond to the tune of 4.8 billion euros. These figures contrast sharply with those of rival French PSA (Peugeot, Citroën) who has managed to earn the money in the first half, despite the economic crisis, with a net profit of 595 million euros.

Failure of the group's strategy in China

But Renault (which also includes the brands Dacia, Lada, Alpine and Samsung Motors) suffers from overcapacity at a global level. It has been particularly hard hit by the decline in the market related to the health crisis. The turnover has plunged 34.3% on the first six months of the year, to 18.4 billion euros. The operating margin fell significantly in the red, to-1.2 billion euros. Renault is estimated at $ 1.8 billion negative impact of the health crisis. This margin was positive for € 1.7 billion in the first half of 2019.

The manufacturer has announced impairment of assets of € 445 million, in order to take into account the "assumptions of volume journals" to decline "for some of the vehicles", as well as provisions for restructuring charges for $ 166 million euros, "primarily related to the plan of departures in France". Finally, the failure of the strategy of the group in China, is also recognised in the financial statements with 153 million euros less gain on sale in this country, a charge related to the sale of the shares of Renault in its joint venture with Dongfeng Motor Corporation. Renault had announced that it was abandoning the sale of cars, motor thermal in China to focus on the utilities, and electric vehicles.

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These charges are reflected in the operating loss, which amounted to 2 billion euros, against a profit of 1.5 billion last year over the same period.