Automobile company Renault suffered a record € 8 billion in net loss last year amid the pandemic's devastating impact on European demand. The automaker's net loss was worse than analysts' forecasted 7.8 billion euros, with most of the losses in the first half of the year.
In the second half of the year, operating margin was 3.5%, and Renault showed positive free cash flow from operations in the automotive industry.
For the year, the group's revenue fell by 22% to 43.5 billion euros, slightly below estimates.
The company estimates that a global microchip shortage could cut its production by 100,000 vehicles this year.
Renault's new boss previously said it would cut production capacity by a quarter, boost cost cuts from € 2 billion to € 3 billion by 2025, including 15,000 job cuts.
In the middle of last year, the French authorities agreed to provide financial support to Renault, affected by the coronavirus pandemic. In return, the concern must fulfill a number of conditions, in particular, produce more electric cars and participate in the German-French project for the development and production of batteries.
Recall that Renault cars are the most sold cars on the Ukrainian market. At the end of 2020, 14,360 cars of this brand were sold here. Renault Duster became the most popular model of this French brand among Ukrainians - 5,534 registrations in twelve months.