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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 took bullet train to Osaka en route to Lebanon

Japan Justice Minister Masako Mori speaks during a press conference about Carlos Ghosn's escape from Japan. / Getty TOKYO — Former Nissan and Renault boss Carlos Ghosn began his astonishing escape from Japan with a bullet train ride from Tokyo to Osaka, possibly accompanied by several people, Japanese news agency Kyodo reported Monday. Japanese authorities also said on Monday they may still press for Ghosn's extradition from Lebanon to face multiple charges of financial wrongdoing, even though the country does not normally extradite its nationals. Security cameras captured Ghosn leaving his home on Dec. 29 at about 2:30 p.m. (0530 GMT) and arriving some hours later at Tokyo's Shinagawa Station, where he took the train 300 miles to Shin Osaka Station, Kyodo said, citing a person familiar with the matter. The international fugitive then went by car to a hotel near Osaka's Kansai International Airport, where he boarded a private jet at 11:10 p.m., according to the media report. Ghosn was forbidden from leaving Japan while awaiting trial on charges of financial misconduct, which he has denied, but he fled at the end of 2019 to escape what he called a "rigged" justice system. Prosecutors are now working with police to piece together Ghosn's route and find out who helped him, Kyodo said. In the government's first briefing since Ghosn skipped bail, Justice Minister Masako Mori said on Monday that as a general principle, Tokyo could request the extradition of a suspect from a country with which it has no formal extradition agreement. Such a request would need to be carefully examined based on the possibility of "guaranteeing reciprocity and the domestic law of the partner country," Mori told reporters in Tokyo.   Arrest warrant Mori did not say what would guarantee reciprocity (the idea that benefits or penalties extended by one country to citizens of another should be reciprocated). She also did not say if there were any Lebanese nationals in Japan wanted in Lebanon. Mori offered little insight into the events of Ghosn's escape to his ancestral home, repeatedly saying she could not comment on specifics because of an ongoing investigation. Japanese officials broke days of silence about the Ghosn case on Sunday, saying they would tighten immigration measures and investigate his escape thoroughly. The authorities have also issued an international notice for his arrest.

Ford Mustang chief engineer, mid-engine Corvette | Autoblog Podcast #488

Note: There were some technical difficulties that prevented some of you from downloading this week's podcast. The player and link below should be working now, and the file has reached iTunes and other feeds as well. Thanks to everyone who wrote in to let us know of the issues! On the podcast this week, we have some questions for Ford Chief Engineer Carl Widman. Plus, Associate Editor Reese Counts joins Mike Austin to talk about the latest news, most notably the spy photos of the upcoming mid-engine Corvette. We also chat about the Jaguar F-Type Coupe, the Nissan Armada, and why 0-60 mph is a stupid performance figure. And, of course, we get into some Spend My Money advice, telling strangers what car to buy. And new this week is a cost-no-object what-cars-would-you-buy game. The rundown is below. And don't forget to send us your questions, money-spend or otherwise, to podcast at autoblog dot com. Autoblog Podcast #488 The video meant to be presented here is no longer available. Sorry for the inconvenience. Topics and stories we mention Mid-engine Chevrolet Corvette spied Chevy Bolt EV comes with 238 miles of range Ford will sell self-driving cars by 2025 Jaguar F-Type Coupe 2017 Nissan Armada (yes, Mike knows it's not a Patrol) Ford Mustang Chief Engineer Carl Widman interview Spend My Money - we give purchase advice Why 0–60 mph is a stupid performance test Rundown Intro - 00:00 The news - 03:30 What we've been driving - 16:20 Carl Widman - 26:44 Spend my money - 37:03 New fun game - 51:48 0–60 mph is overrated - 56:50 Total Duration: 1:04:57 Get The Podcast iTunes – Subscribe to the Autoblog Podcast in iTunes RSS – Add the Autoblog Podcast feed to your RSS aggregator MP3 – Download the MP3 directly Feedback Email – Podcast at Autoblog dot com Review the show in iTunes Podcasts Chevrolet Ford Jaguar Nissan Car Buying nissan armada mid-engine corvette jaguar f-type coupe