The French carmaker Renault has lowered its sales and profit targets for the second time within three months due to weak demand. The proceeds are likely to fall in 2019 by three to four percent, the company said. In addition, only about five instead of six percent of revenues should be generated as operating profit.
In July, the then group management had already lowered its expectations downwards and, in terms of sales, instead of an increase, only aimed to achieve a similar level to the previous year. Currency fluctuations as well as the purchase and sale of parts of the business were eliminated.
In the third quarter, Renaults sales decreased according to the information by 1.6 per cent to 11.3 billion euros. On an adjusted basis, the decline would have been 1.4 percent. Renault wants to publish further figures for the third quarter on October 25th.
Leadership crisis at Renault
Demand is currently declining throughout the auto industry. Renault adds that the Japanese partner Nissan not contributed in the first six months as in the previous year to the profit, but cost money. Nissan cuts 12,500 jobs as part of its radical savings program.
Just last week, Renault had fired its General Manager Thierry Bolloré. Interim successor was the previous CFO of the manufacturer, Clotilde Delbos. Bolloré led the operating business at Renault. The manager had already been number two at the manufacturer under former CEO Carlos Ghosn.
Following the arrest of Ghosn in Japan in November 2018, the Franco-Japanese car alliance between Renault, Nissan and Mitsubishi he had created and controlled had fallen into a serious crisis. Ghosn had been accused of violating stock market regulations in Japan.
