F1 News
Problems for Renault: billions of losses in just a few months
- GPblog.com
Many companies are struggling because of the coronavirus, but it seems that Renault has been hit very hard. The car company has already lost billions of euros in 2020 due to the global Corona pandemic.
Earlier this year, reports were already coming out that Renault is struggling financially. There were even doubts whether the Renault team could participate in the Formula 1 season this year or whether the plug had to be pulled prematurely.
The problems for Renault only seem to get worse. Since the beginning of the year, the car company has made a loss of no less than 7.29 billion euros. "We have reached a low point", says vice-director Clotilde Delbos during a digital press conference, reports Finanzen.net.
Red figures for Nissan
In recent months, Renault's sales have fallen by 34 percent, with just 18.4 billion in sales. The biggest pain for the company lies not only with its own cars, but with those of Nissan. With a share of 43.4 percent, Renault owns the largest part of the Japanese manufacturer, but Nissan numbers are deep in the red.
The French state tries to help Renault as much as possible, among other things with a five billion euros that the company can use as a loan. To make ends meet, Renault has already announced in May that it will cut 15,000 jobs worldwide. For now, the measures will not affect the Renault F1 team, but it will only be a matter of time if the bad news continues.