AutoBeta(AutoBeta.net)02/21 Report--

French carmaker Renault Automotive Group officially announced its 2020 results. According to the financial report, Renault Group's operating income fell 21.7% year-on-year to 43.5 billion euros (340.3 billion yuan) in 2020, with a net loss of 8 billion euros (62.6 billion yuan), the biggest loss year since Renault Group was founded. Renault said the loss was mainly due to a decline in car sales in major European markets as a result of the COVID-19 epidemic.

In fact, the reason why Renault made such a big loss is because of Nissan. Nissan owns 44 per cent of Renault in the Renault-Nissan-Mitsubishi alliance, while Nissan posted a net loss of 4.97 billion euros in 2020, accounting for more than 60 per cent of Renault's loss of 8 billion euros.

China is the largest auto market in the world. According to the "Market Analysis of mainstream Automobile Enterprises in 2020" summarized previously, the Chinese market has become the largest single market for Volkswagen, GM, Honda and other large car companies, especially under the influence of the epidemic, China is the first to recover from the epidemic. A number of large models have increased their layout in the Chinese market, further narrowing the decline in sales, and even achieving year-on-year growth to Toyota.

On April 14, 2020, both shareholders of Dongfeng Renault announced that the joint venture company had officially ceased operation, Dongfeng Renault was delisted and reorganized, and Renault transferred its 50% stake in Dongfeng Renault to Dongfeng Automobile Group. Dongfeng Renault stopped the business activities related to the Renault brand, becoming the first Sino-foreign joint venture car company to collapse in 2020.

Even so, Renault will expand its presence in China, focusing on new energy and light commercial vehicles. In the field of electric vehicles, Egett New Energy vehicle Co., Ltd. is a joint venture among Renault, Nissan and Dongfeng, which has launched Renault Eno in China. In addition, as the largest shareholder of Jiangling New Energy, its first model, GSE, also officially began production.

In the field of light commercial vehicles, there is Huachen Renault Golden Cup Automobile Co., Ltd. At the end of last year, brilliance Renault Golden Cup Automobile Co., Ltd. also launched a new Golden Cup Sea Lion King model.

Judging from Renault's performance, it lost 141 million euros in 2019, the first annual loss in a decade. The loss in 2020 exceeded 8 billion euros, the biggest loss year since the founding of Renault Group. However, it was also due to a decline in the epidemic, and most of the losses were concentrated in the first half of the year, and Renault's losses have been brought under control with the implementation of cost-cutting plans in the second half of the year. However, the current global epidemic is still in a pandemic period, coupled with the impact of insufficient supply of semiconductor chips, Renault Group may also face great difficulties in 2021. For now, Renault's top priority remains to ensure profitability and cash flow. Renault had previously proposed a plan to cut costs by 2 billion euros, which is expected to be achieved by the end of this year.

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