Renault sees revenue drop a fifth due to coronavirus
French car giant Renault saw its revenue drop nearly a fifth in the first quarter, warning that it was still to early to say what the overall impact of the coronavirus crisis would be.
Revenue at the group fell 19.2 per cent to reach €10.1bn (£8.9bn) as car sales slumped due to the pandemic, which has closed dealerships and stymied demand.
For the first time in its history the auto giant sold more cars in Russia than it did in its home market.
Some of Renault’s losses were offset by increased sales of more expensive models such as its Captur SUV, but an overall slump in volumes dragged the firm down.
The carmaker has already cancelled its dividend and suspended its financial guidance as a result of the crisis.
Renault’s liquidity also fell in the quarter, from around €15bn at the end of 2019 to closer to €10.3bn as of today.
The results come as Renault prepares to update investors as to its alliance with Nissan, which was under pressure even before the coronavirus crisis began.
Earlier this month it was announced that the French firm would quit its Chinese joint venture in order to make the most of its partnership with the Japanese firm.
Relations between the two partners, who both recorded losses in 2019, have been strained by the arrest and subsequent flight of former Nissan executive Carlos Ghosn in 2018.
Renault has suggested that it is seeking financial support from the French government, with the firm’s chairman saying it was working on arranging a loan worth €5bn.
Speaking on French radio, Jean-Dominique Senard said: “We are working on the idea of bank loans that would be guaranteed by the state and later reimbursed. This will help us get past this bad period.”