Renault Revenues Drop With Falling Diesel Sales

French automaker Renault said on Thursday that its revenues had tumbled by more than 2 per cent to 57.5 million euros. It announced financial results as scandal continues to engulf its former chairperson Carlos Ghosn.

Net profit was down to just over 3 million euros compared to 5.3 million euros in the previous year.

The carmaker said a decline from Nissan’s contribution had not helped the company’s loss in net income. The French firm owns 43 per cent of the Japanese automaker.

Thierry Bollore, Renault’s chief executive, said the results represented a strong performance, despite the business environment deterioration.

The fall in sales to partners was mainly due to pulling out of the Iranian market and falling sales in diesel vehicles, the carmaker said .

It also pointed to losses in revenue because of changes in foreign currency exchange rates.

Former chairperson Ghosn had championed the partnership between Renault, Nissan and Mitsubishi. However, he has been locked up in Tokyo since November.

Ghosn has been charged with falsifying financial reports and breach of trust. The charges relate to alleged under-reporting of compensation, payments to a Saudi businessperson and losses attributed to Nissan .

New chairperson Jean-Dominique Senard will meet with Nissan’s boss Hiroto Saikawa this week to discuss the future of the carmaker alliance.

Ghosn will not receive millions of euros in compensation, Renault said earlier this week. The company also cancelled stock granted to Ghosn between 2015 and 2018, which was subject to his continued employment at Renault.

A Renault spokesperson said almost half a million shares will be cancelled worth almost 26 million euros.

Source: Modern Ghana