Posted Feb 14 2020 at 10:14 am Updated on Feb 14 2020 at 10.49 am
Renault ended a dark year in red, a first since the economic crisis of 2009. And his staff does not expect to do much better this year, the coronavirus and the Chinese prospects not helping. It is therefore necessary to intervene, and quickly.
“We cannot afford the luxury of waiting the arrival of Luca de Meo in July to act on fixed costs, “said the one who holds the wheel while waiting for the Italian leader, Clotilde Delbos. “2019 was a difficult year for Renault […]. We are not satisfied with the results, ”she says.
Clear cuts
Still traumatized by the Ghosn affair , Renault is preparing a vast savings plan to reduce its structural costs by two billion euros over the next three years. Actions will be presented in May “to optimize the industrial footprint and make the best use of the alliance with Nissan and Mitsubishi “, Specifies Clotilde Delbos. Clearly, downsizing and plant closings could be in the pipeline. “We do not exclude anything,” including closings in France, said the interim leader.
Renault, in difficulty, plans to restructure its industrial apparatus. With factory closings around the world, even in France? “We have no taboos, we exclude nothing,” replies the interim director general, Clotilde Delbos.
– Lionel Steinmann (@lionelSteinmann) February 14, 2020
The manufacturer will also proceed in the coming months to a review of its non-strategic assets. Renault, for example, still has a small stake in Daimler, with which nothing has happened for two years. As well as 43% of Nissan’s capital, even if Clotilde Delbos affirms that the French group has not “once discussed a change in the shareholder balance with Nissan since the new governance is in place”.
Great review
With such a program, Luca de Meo will undoubtedly be able to make a cross on his summer vacation, he who arrives in Boulogne-Billancourt in early July. Until then, Gilles Le Borgne, the new strong man of R & D of the Rhombus come from the house opposite PSA , will have potentially taken stock of the group’s programs and technologies. Clotilde Delbos said on Friday that Renault was thinking about extending its partnership in large vans with Renault Trucks, which today belongs to Volvo.
This is Renault’s response to certain financial analysts who considered it necessary to recapitalize in the short or medium term. But by tightening the bolts in the second half, the Losange managed to maintain its free cash flow in the green – at 153 million euros. “Our liquidity reserves are in line with our internal objectives and greatly exceed our needs for the years to come,” said the deputy chief financial officer.
The Losange can finally hope to find some oxygen with the important models launched in recent months – the new Clio, Captur and Zoe. As business is no better at Nissan , the Franco-Japanese team lost title to world’s largest car seller , dethroned by Volkswagen and Toyota.