Renault With A Sharp Drop In Profits

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Renault With A Sharp Drop In Profits
Renault With A Sharp Drop In Profits
Anonim

The industry is in crisis. The French car manufacturer Renault, which suffered a sharp drop in profits in the first half of the year, is also feeling this.

The difficulties of the Japanese partner Nissan also contributed to this. The French are no longer assuming an increase in sales this year due to the difficult industry environment.

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So far, the Volkswagen rival had expected growth. The development is now expected to be weaker, especially in Russia and Brazil, which are important for the group, as Renault announced on Friday at the company's headquarters in Paris. Europe, on the other hand, should remain stable - provided that there are no major upheavals as a result of Brexit. After Boris Johnson was elected British Prime Minister, an unregulated Brexit is becoming increasingly likely.

6.7 percent lower sales

Renault had sold 1.94 million cars worldwide in the first six months, 6.7 percent fewer vehicles. Sales fell by 6.4 percent to around 28.1 billion euros.

The bottom line was that the profit for the Renault shareholders slipped by half to 970 million euros, mainly because the alliance partner Nissan did not deliver any profit shares this time as it did a year ago, but cost money.

Nissan is cutting jobs

The Japanese had announced the day before that after a sharp drop in profits, they wanted to cut 12,500 jobs and thus every eleventh job. Even in its own day-to-day business, Renault cannot avoid the crisis in the auto industry. The operating result fell by 13.6 percent to 1.65 billion euros.

In any case, it is unclear how the Franco-Japanese alliance will continue after Carlos Ghosn has been kicked out. The manager had been accused of violating stock market requirements in Japan. Ghosn played a key role in forging the alliance and was in charge of it in several functions. (dpa)

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