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Renault gets a 'wake-up call' — a record $8.6 billion loss

PARIS — French carmaker Renault said it had been given a wake-up call on Thursday with a record net loss of 7.29 billion euros ($8.6 billion) in the first half of the year, inflicted by the COVID-19 crisis and troubles at its alliance partner Nissan. Global automakers have been hit hard by the coronavirus pandemic, which has shuttered factories and kept many customers away from car dealerships. But the Renault-Nissan alliance has been hit especially hard as it was already weakened by low margins and boardroom turmoil surrounding Carlos Ghosn, the architect of the alliance who was ousted in 2018. Renault shares were down 3.3% when trading opened in Paris. "Today's results will be a disturbing wake-up call," CEO Luca de Meo, the former Volkswagen executive who started at Renault this month, said on a call with analysts. "We are currently touching the bottom of a negative curve that started several years ago, and probably even earlier," de Meo added. "We are in a complex, difficult situation. We all are. But ... we were already, I would say, feverish. So for sure it is even harder for us." De Meo said the company would now double down on a previously announced turnaround plan, laying off thousands of workers, reducing the range of models, and improving cooperation between alliance partners on vehicle production. He said a team of 40 senior executives from across Renault was cloistered on the top floor of the company's headquarters in Boulogne-Billancourt near Paris, working on details of a strategic plan which will be presented in January at the latest. He said his focus would be pushing the Renault brands that can deliver profits — especially compact cars, SUV crossovers, and electric and hybrid vehicles — and shifting emphasis from volume to value. "We know what we need to do," de Meo said. "Better times are waiting at the end of this twisty road." Renault said group operating losses, factoring out the effect of Nissan's losses, reached 2 billion euros in the first half, compared with operating income of 1.5 billion last year. Sales slumped 34.9%, a result the company attributed mainly to the global COVID crisis and Renault burned through $6.38 billion in cash over the first half. Nissan Motor Co this week warned of a record $4.5 billion operating loss this year and its lowest sales in a decade. Its negative contribution accounted for 4.82 billion of Renault's net losses, the French firm said on Thursday.

Ghosn says having Apple in EV business would be good news

Nissan once promised to have commercially viable autonomous vehicles on the road by 2020 and even certified a Leaf to test the technology in Japan. The company has since backpedaled a bit from its original lofty claims, though. During CEO Carlos Ghosn's keynote presentation at the Mobile World Congress in Barcelona, Spain, the auto exec talked more about the automaker's strategy and directly confronted Apple's rumored entry into the market. "When Apple says they are going to come with an electric car in 2020, that's good news for us," he said in his speech, according to Adweek. Ghosn took the view that any company able to grow the acceptance of EVs would help every automaker in the segment. The Renault-Nissan Alliance has been at the forefront of developing the market and claimed nearly 60 percent of the global market share last year. He was also the latest auto industry heavyweight to voice his opinion on Apple entering the industry. However, in contrast to former General Motors boss Dan Akerson, the Nissan CEO was much more welcoming. Ghosn also used the speech as a chance to clarify Nissan's plans for autonomous vehicles and seemingly pushed the original goal back by about five years. "In 10 years, you'll have cars without the driver. It is here, and it's going to transform the products," he said, according to Adweek. Under Nissan's current timeline, traffic-jam assist and fully automated parking are due in 2016, followed by automatic lane changing in 2018 and the ability to drive through intersections without a driver's control comes in 2020. News Source: AdweekImage Credit: Yasuyoshi Chiba / AFP / Getty Images Green Nissan Renault Technology Emerging Technologies Autonomous Vehicles Electric

Carlos Ghosn returns as president of ACEA

The European Automobile Manufacturers' Association (abbreviated ACEA in French) is an industry group representing all the biggest automakers in Europe, representing their common interests on the world stage. And as such it needs a leader, figurehead and mouthpiece to serve as its president, and for the second time the association's board of directors has chosen Carlos Ghosn.
Now if you're recognizing Ghosn as the CEO of Nissan and wondering what that has to do with European cars, it's not because Nissan manufactures much in Europe. In fact, it only operates has a handful of locations in Europe: one in the UK, one in Barcelona and one in St Petersburg. But you'd be wise to recall that Ghosn also serves as CEO of Renault, one of the biggest players in European automobile manufacturing. He also sits on the boards at Russian automaker AvtoVAZ (of which Renault owns 25 percent) and of his native Brazil's Banco Itaú, not to mention the advisory councils of a handful of universities - two of them from his ancestral hometown of Beirut. He previously served as president of ACEA in 2009, and was re-elected to replace outgoing PSA chairman Philippe Varin.
Alongside Renault, ACEA membership includes BMW, Daimler, Fiat, Jaguar Land Rover, PSA Peugeot Citroën, Volkswagen and Volvo, along with the European divisions of Ford, General Motors, Hyundai and Toyota, as well as a handful of truck manufacturers.