The Strategist

Renault climbs out of losses

08/02/2021 - 03:41

Renault's chief executive Luca de Meo has reported a "return from hell" for the first half of the year. He said this in an interview with Bloomberg.

Albert Fernandez Fernandez
Albert Fernandez Fernandez
According to de Meo, the worst is over and the company has started earning again. Renault made a profit of $368 million in the first half of the year, while the company recorded a loss of €7.4 billion in the same period in 2020. 

In the first six months of this year, 1.42 million cars were sold, up 19 percent from the same period in 2020, but nearly a quarter less than the same "pre-demand" period in 2019. Renault's head predicts the company will enjoy stable profits despite chip shortages and rising raw material prices.

Luca de Meo took over as head of the company in July 2020. He previously worked at Toyota, Fiat, Volkswagen, Audi, was a member of the supervisory boards of Ducati and Lamborghini and was chairman of Volkswagen Italy. A year after his appointment, he considers the absence of a carmaker in the Chinese market to be unacceptable, which was one of the reasons Renault lagged behind its rivals Volkswagen and Stellantis. The focus on the European market, which is recovering more slowly than the Chinese and American markets, has had a negative impact on the company's speed of recovery.

Last year, Renault said it planned to cut almost 15,000 jobs worldwide and cut production capacity by 20 percent to cut costs by two billion euros. Nearly a third of employees will lose their jobs in France. The company's losses in 2020 were eight billion euros.


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