Renault wrote its first red figures for 2019 in ten years. The French manufacturer announces a substantial cost saving in response, but the French government is slowing down. There is in fact feared of job losses.
The Renault-Nissan-Mitsubishi alliance is certainly not going well. This was already apparent from various reports about major cost savings and job losses at Nissan. Things aren’t going much better at Renault. The brand announces that it will have a net loss of € 141 million in 2019 and will therefore record red figures for the first time in ten years. Although Renault itself does reasonable business, the difficult period with partner Nissan also has an effect on the greenhouse at Renault. The major investments that the brand made in changing the fleet also play a role.
To come out better next year, Renault wants to cut costs considerably, according to interim chief executive Clotilde Delbos (formerly financial director of the brand). No measure is taboo, according to her. All in all, two billion euros must be saved in the next three years. According to Reuters, a concrete plan will follow in May, which will also make it clearer about the future of the alliance with Nissan.
Before the concrete plans are presented, Renault already receives a warning from the French government. France is a major shareholder (15 percent) of Renault and therefore has a big finger in the pie. According to Automotive News, Bruno Le Maire, the French Minister of Finance, has a clear message. “The state will play its role as a shareholder and ensure that Renault does not make choices at the expense of jobs and factories in France.” Le Maire further indicates that he will keep close contact with the board of directors to discuss further developments.