Covid-19: Renault posts historic loss of 8 billion euros in 2020 due to pandemic

Covid-19: Renault posts historic loss of 8 billion euros in 2020 due to pandemic

The French manufacturer saw its sales plunge by 21.3% in 2020, with less than three million vehicles sold in a market in free fall.

The window of the Renault store on the Champs-Elysées in Paris on February 5, 2021. (RICCARDO MILANI / HANS LUCAS / AFP)

Renault in the same boat as Air France-KLM. While the airline announced Thursday a loss of 7.1 billion euros due to the Covid-19 epidemic, the automaker unveiled its results for the year 2020 on Friday, February 19. The diamond group recorded a loss of 8 billion euros, according to a statement from the firm. This loss is mainly due to the contribution of the Japanese partner Nissan, 43% owned by Renault, which penalized it to the tune of 4.9 billion euros. For its part, Renault saw its sales plunge by 21.3% over the year, with less than three million vehicles sold in a car market in free fall.

“The year 2021 will be difficult”

The group recorded a loss of 7.3 billion euros in the first half. But he limited the breakage in the second half, with a loss of only 660 million euros and a turnover down 8.9%. And according to the general manager, Luca de Meo, quoted in the press release, “2021 will be a difficult year, with uncertainties linked to health crises and the supply of electronic components.” The group has not published any forecasts for this year. Already in bad shape before the crisis, Renault announced at the end of May 2020 a savings plan of more than 2 billion euros over three years, providing for some 15,000 job cuts around the world.