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Renault crashes to record 2020 loss on the back of the epidemic

French carmaker Renault said on Friday that it recorded a record loss in 2020 as the coronavirus pandemic affected its performance and it appears it will affect expectations this year as well.

Renault said in a statement that it recorded a net loss of 8.05 billion euros last year, compared to a net profit of 19 million euros in 2019.

Renault said its Japanese partner Nissan, in which it holds a 43% stake, was responsible for 4.9 billion euros of the losses.

Full-year revenue decreased by 22% to 43.5 billion euros and car sales decreased by 21%, to 2.95 million worldwide.

However, “after the first half of the Covid-19 impact, the group has significantly transformed its performance in the second half,” the automaker said.

“The results of the second half … represent the first step in the group’s recovery,” said Luca de Meo, CEO.

However, 2021 is set to be difficult given the unknowns regarding the health crisis as well as the shortage of electronic components supplies.

De Meo did not provide any specific forecasts for 2021, but insisted: “We will face these challenges collectively, while maintaining the momentum towards the recovery that we have successfully engaged in since last summer.”

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