Renault recorded a record net loss of € 8 billion in 2020 due to falling car sales following the restrictions imposed and the crisis brought on by the corona virus pandemic.
Most of the damage occurred in the first half of the year, when the car industry was at a complete standstill due to the imposed restrictions. Director Luka de Meo expects that 2021 will be difficult as well due to numerous uncertainties regarding the health crisis and the shortage of electronic components.
Renault said that business improved significantly in the second half of 2020 and that an operating margin of 3.5% and a positive operating cash flow were generated in that period.
The poor business result of the French giant was largely contributed by Nissan, which itself accumulated a deficit of almost EUR 5 billion, also for the most part in the first half of last year. The third member of this alliance, Mitsubishi, has also been shaken to its foundations, and its recovery depends on the business of two larger partners.
Renault’s sales fell by more than 20% last year, to 2.95 million vehicles. Former director Carlos Gon planned to reach the sale of 5 million vehicles by the end of this year. Renault’s new management, meanwhile, said the priority was to increase profitability, not sales.
Source: Nacionalna Klasa by www.nacionalnaklasa.com.
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