Renault to take 3.6 billion euro hit from Nissan losses

Renault to take 3.6 billion euro hit from Nissan losses

French carmaker Renault said on Thursday that losses at its Japanese partner Nissan , in which it has a 43per cent stake, would drag on its on net earnings by 3.6 billion euro (US$3.96 billion) in the first quarter.

Logo of Renault carmaker is pictured at a dealership in Les Sorinieres
The logo of Renault carmaker is pictured at a dealership in Les Sorinieres, near Nantes, France, February 19, 2020. REUTERS/Stephane Mahe

rPARIS: French carmaker Renault said on Thursday that losses at its Japanese partner Nissan , in which it has a 43per cent stake, would drag on its on net earnings by 3.6 billion euro (US$3.96 billion) in the first quarter.

Renault, which posted its first net loss in a decade in 2019, has like Nissan been struggling with faltering sales, a slide exacerbated this year by the coronavirus pandemic.

The two firms, which this week announced plans for more production sharing under their three-way alliance with Japan's Mitsubishi Motors in a bid to cut costs, are also embarking on individual restructuring and savings plans.

Nissan posted an annual operating loss of 40.5 billion yen (US$376 million) for the year to March 31, its worst performance since 2008/09, while net losses came in at 671.2 billion yen.

Renault is due to announce details of its turnaround plan on Friday.

(Reporting by Sarah White; editing by Jason Neely)

Source: Reuters

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