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After Nissan, a profit plunge at Renault too

Video Credit: Reuters Studio
Published on July 26, 2019 - Duration: 01:15s

After Nissan, a profit plunge at Renault too

French automaker Renault cuts revenue goal after a weaker first half, a day after alliance partner Nissan announced big job cuts and earnings woes.

Francis Maguire reports.

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After Nissan, a profit plunge at Renault too

A warning light flashing at Renault Friday.

The French automaker said revenue may drop this year and lowered its sales outlook.

First-half profit hit by weaker car demand.

Net income down by more than half in the first six months.

It blamed falling sales in France, Turkey and Argentina, for a 7.7% revenue drop at its core auto business.

Renault's gloomy update comes a day after alliance partner Nissan announced 12,500 job cuts.

The Japanese carmaker also saw profits almost wiped out.

Friday's results come with tensions already high in the Renault-Nissan alliance.

Former CEO Carlos Ghosn was arrested in Japan last year for alleged financial misconduct.

Ghosn - who denies the charges - now awaits a trial.

Renault shares down 19% since the November arrest.

The Sino-U.S. trade war has hit margins at many global car companies, But Renault's struggles contrast with French rival PSA Group.

The Peugeot maker recorded an 8.7% profit margin Wednesday.

Renault is now counting on new model launches to boost performance in the second half.

The automaker also pledged to deliver positive full-year cash flow.

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Carlos Ghosn

French-Brazilian-Lebanese businessman, former chairman of Renaultโ€“Nissanโ€“Mitsubishi Alliance


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