Renault has announced a €7.29 billion ($8.58 billion) loss for the first half of the year.
In its second-quarter earnings call, the French car manufacturer revealed that Nissan was responsible for €4.8 billion ($5.7 billion) of that amount with €4.29 billion ($5.09 billion) of impairments and restructuring costs.
On the back of this news, Renault shares plunged by as much as 8.8 per cent. They have fallen 47 per cent this year.
During the first half of the year, Renault reported a group operating loss of €2 billion ($2.37 billion) with an automotive cash burn of €6.4 billion ($7.6 billion). To help the company navigate the coronavirus crises, it accepted a government-backed credit facility of €5 billion ($5.9 billion) and, as of the end of June, held €16.8 billion ($19.9 billion) of liquidity, Bloomberg reports.
“Although the situation is unprecedented, it is not final,” Renault chief executive Luca de Meo said in a statement. “Together with all of the Group’s management teams and employees, we are fully dedicated to correcting the situation through a strict discipline that will go beyond reducing our fixed costs. Preparing for the future also means building our development strategy, and we are actively working on this. I have every confidence in the Group’s ability to recover.”
Renault recently announced that it will eliminate roughly 14,600 jobs worldwide and lower production capacity by almost a fifth as it looks to cut costs by more than €2 billion ($2.37 billion), of which €600 million ($713 million) in savings is forecast to be made this year. De Meo will be charged with executing a new strategy focused on value rather than volume and commented that Renault is “currently touching the bottom of a negative curve that started years ago.”