Sat. Aug 17th, 2019

Nissan penalizes the results of Renault, which gains 37% less in 2018

Nissan penaliza los resultados de Renault, que gana un 37% menos en 2018

The automobile group Renault won 3,302 million euros in 2018, which represents a fall of 36.6% Over the previous year. A reduction that is mainly explained by a decrease in the contribution of his Japanese partner Nissan, which owns 43%, on which the scandal of Carlos Ghosn. The Japanese company went from contributing 2,791 million euros to the results of Renault in 2017 to only contribute 1,509 million during the past year.

The main metrics were down. Revenues decreased by 2.3%, operating income fell by 820 million and was affected by key markets such as Europe or South America due to the impact of exchange rates.

New stage

Strengthen the relationship between both firms, Senard's first objective

The presentation of results means the total closure of the stage of Charles
Ghosn in front of Renault
He has already been imprisoned in Tokyo for three months. Now begins the stage of his replacement, the former executive director of Michelin, Jean
Senard and of Thierry Bolloré, CEO.

The new president of the French group has already set to work to strengthen its relationship with Nissan. Senard has already landed in Japan to meet with the management of its Japanese partner, despite the deterioration of the results.

"We are going to talk about the future of Nissan and Renault and we are going to enter into an important phase," he told reporters after ensuring that he will maintain a new round of talks with the Japanese company's top management on Thursday and Friday. In addition, Senard and its management team will propose to the board the distribution of a dividend of 3.55 euros per share, like last year.


The devaluation of currencies, the decline of diesel and the sanctions on Iran also weigh

Beyond the decline in profits, Renault's operating profit also fell by 819 million euros to 2,987 million euros. The turnover of the automobile group also fell by 2.3% to 57,419 million euros.

A fall that is mainly due to the consequences of devaluation of the currencies of the countries where it has activity (Argentina, Brazil, Turkey), the decline of the diesel in Europe and for the abandonment of their business in Iran after the sanctions imposed by state

Negative results despite the fact that Renault managed to raise the average price of the cars it sold both in Europe and in emerging markets.

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