Iran Energy News Oil, Gas, Petrochemical and Energy Field Specialized Channel
Related Articles
Renault SA moved to reassure investors by dangling the prospect of cost cuts and assets sales after posting its first annual loss in a decade and slashing its payout to shareholders.
The French carmaker. suffering from slumping sales in key markets and a dismal performance at partner Nissan Motor Co.. will conduct a review of its Chinese assets and explore plant closures to rein in costs. acting Chief Executive Officer Clotilde Delbos told reporters at a press conference near Paris.
Considering the situation of the global market and considering that we maybe had too much capacity for volume goals that were higher than what we have today. we don’t exclude any taboo. whether in the world or in France. Delbos said.
The stock rose as much as 4% following her remarks. more than reversing its earlier plunge to a seven-year low in the wake of the carmaker’s disappointing annual results.
Renault and Nissan. linked in an uneasy alliance for the past two decades. have been dogged by infighting and instability since the arrest of former leader Carlos Ghosn 15 months ago. While Renault last month picked former Volkswagen AG executive Luca de Meo as its new CEO. he doesn’t start until July.
In the meantime. Renault will press ahead with a plan to trim structural costs by at least 2 billion euros ($2.2 billion) over three years. Delbos said. adding the company doesn’t have the luxury of waiting for De Meo’s arrival.
Nissan Impact
Nissan’s decision to scrap its year-end dividend represented a big financial hit for Renault. which owns 43% of the Japanese carmaker. The French company will cut its own payout by more than two-thirds to 1.10 euros a share. the lowest level since 2011.
Renault lowered its guidance for 2019 revenue and profit in October. saying weakening economies weighed on car sales in key markets while tougher rules on emissions pushed up costs. A deteriorating performance at Nissan has also hit results. Its contribution to Renault’s results plunged to 242 million euros last year from 1.51 billion euros the year before.
Renault lowered its guidance for 2019 revenue and profit in October. saying weakening economies weighed on car sales in key markets while tougher rules on emissions pushed up costs. A deteriorating performance at Nissan has also hit results. Its contribution to Renault’s results plunged to 242 million euros last year from 1.51 billion euros the year before.
When De Meo takes the helm. he’ll join Chairman Jean-Dominique Senard in trying to shore up Renault’s at times acrimonious relationship with Nissan. Sorting out their differences is crucial as automakers face the costly and uncertain transition to electric vehicles.
The coronavirus outbreak. centered in the key Chinese auto-making region of Hubei. forced Renault to halt production at a Korean plant for four days this week. and more stoppages are possible — even at European plants — because of parts shortages. Delbos said.
The problem is we have no visibility. and I don’t think anybody has any visibility. of the real impact. she said.
