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Renault Witness First Loss in 10 Years, 2020 Vision Crashes

Renault Witness First Loss in 10 Years, 2020 Vision Crashes

Renault reported its first drop in a decade and pared its 2020 margin target on Friday, as it makes an attempt to draw a line under the Carlos Ghosn affair and reboot its Nissan partnership.

Renault Witness First Loss in 10 Years, 2020 Vision Crashes

The French car manufacturer is attempting to move on from the internal turbulence caused by the scandal involving its former chief Ghosn with a management restructuring. In the meantime, it is also struggling like other auto manufacturers, along with Japan’s Nissan, with dropping auto demand in some vital markets like China.

Luca de Meo, who used to operate Volkswagen’s Seat brand, is about to join as Chief Executive in July, taking over from Delbos, who is also Renault’s financial head.

She stepped into the chief executive officer position temporarily after Thierry Bollore, a long-standing Ghosn aide, was removed in October.

Renault reported a loss of 141 million euros ($153 million) for the organization share of net earnings, partly because of charges linked to a few of its Chinese joint ventures.

The addition from Nissan, in which Renault has a 43% holdings, additionally fell, and a French deferred tax charge struck it.

Nissan this week had its first quarterly loss in virtually a decade and cut its operating revenue estimation.

Renault set a 2020 operating margin goal of between 3% and 4%, down from 4.8% last year, and pared its proposed dividend against 2019 by virtually 70% from a year earlier.

Ghosn, who controlled Renault and oversaw its partnership with Nissan, was arrested in Japan in late 2018 on financial wrongdoing charges; however, he fled to Lebanon in December.

He has refused wrongdoing and hit out at his past employers, saying the Renault-Nissan partnership was all but useless without him.