In recent years, the legal car in the domestic presence of the feeling is getting weaker and weaker. In fact, in addition to its European base, french cars are far less competitive in the global market than Japanese and Korean vehicles. Moreover, the current impact of the epidemic, but also to the already in trouble in the French car is “worse.”
Renault will sell a building at its French headquarters to cut costs further, according tomedia reports. However, the building has an extraordinary significance for the Renault Group.
In October 1898, the brothers Louis Reynolds, Marcel Reynolds and Fernand Reynolds founded Renault in the building. Located in the old town of Boulogne Billancourt, the building is five storeys high and houses trade unions, sports facilities and archives.
According to its annual results, Renault’s operating income in 2019 was 55.537 billion euros (430.645 billion yuan), down 3.3 percent from a year earlier, while net profit was 141 million euros ($1.093 billion), the first annual loss in a decade.
And in response to the impact of the first-quarter outbreak, Renault has consumed more than 5 billion euros ($38.771 billion) in cash reserves, which has also created a bigger challenge for the group’s growth this year. Renault has now withdrawn its financial results targetfor this year and will be redrafted on the current basis.
Renault’s performance in China, the world’s largest car market, is hardly satisfactory. According to the latest sales data, Renault’s joint venture in China, Dongfeng Renault, sold 18,548 vehicles in 2019, down 63% year-on-year, while Dongfeng Renault sold only 672 units in the first quarter of 2020, down 88.5% year-on-year.
And early last month, Dongfeng Group announced that Renault intends to transfer its 50 percent stake in Dongfeng Renault to Dongfeng Group. After that, Renault will focus on new energy and light commercial vehicles in China.