Renault and Nissan have released their financial results for 2020. Renault suffered a massive £6.6 billion downturn for the first half of the financial year, while alliance partner Nissan lost £1.12 billion in the first financial quarter.
Both manufacturers’ sales figures were also down for the period, with the Renault group (that’s Renault, Dacia, Alpine and Lada) suffering a decrease of 34.9 per cent globally and 41.8 per cent in Europe – making it the second-worst hit region for the group after the Americas. Nissan’s sales fell by 47.7 percent globally and 33.7 percent in its home market of Japan.
Future of Alpine to be examined as part of Renault cost cutting measures
The news follows shortly after the Renault-Nissan-Mitsubishi alliance announced its new cost-cutting initiative, which will see Mitsubishi pull out of the UK market and the trio increase the amount of shared technology across their model ranges in an effort to reverse the effects of the coronavirus pandemic.
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In total, the initiative is expected to save the alliance around €2 billion (£1.8 billion) in costs over the next three years. It’s very much unlike the group’s previous product strategy, too. The old model was based on expansion and growth, while this new strategy is built on competitiveness and profitability.