Renault has been hit hard by the corona crisis and CEO Luca de Meo implemented a substantial austerity plan. The toughest period is not yet completely closed, but De Meo sees light at the end of the tunnel.
Renault ended 2020 with a record loss of € 8 billion. Business was particularly bad in the first half of 2020. Due to the virus outbreak, car production was temporarily halted and sales declined. For the whole of 2020, the Groupe Renault saw a decline in sales of 21.3 percent, a heavier blow than average for the car market. Renault is expected to eventually recover from the impact of the crisis, but before that happens, the French car group has a few tough months ahead. Renault CEO Luca de Meo has said this to the French newspaper Le Journal Du Dimanche. “We still have to put our teeth together for a few more months, but there will be recovery,” said De Meo.
De Meo went on to say that when he took office at the end of 2019, he did not hide the fact that it would take between three and five years for the automaker to grow again. After the outbreak of the corona virus, which led to a loss of billions, Renault took significant measures under the leadership of De Meo to keep the company running. According to him, these are now starting to bear fruit. For example, De Meo thinks Groupe Renault may reach its € 2 billion cost savings target before the end of the year, ahead of schedule. Fixed costs and inventories have been reduced, he said.
On Thursday, April 22, Renault will announce the results of the first quarter of this year.