Groupe Renault Posts 2020 Loss of -€8.5 Billion

Ken Zino of on Groupe Renault 2020 Results

Pivoting the business model to tech, energy and mobility by 2025.*

Groupe Renault with sales at 2.95 million units, down -21.3%, had a net loss of -€8.5 Billion ($9.7 billion) during 2020 compared to a profit of €19 million in 2019 as Covid ravaged its results. Japanese partner Nissan – it holds a 43% share – contributed €4.9 billion of the loss. Group revenues were down -21.7% at €43.5 billion or -18.2% at constant exchange rates. Group revenues, however, were down -8.9% in total during Q3 and Q4, which if Covid ever abates provides a glimmer of a possible recovery. Another indicator –  Group operating margin of -€337 million (-0.8% of revenues) was positive at €866 million (3.5% of revenues) in H2.

The disastrous results take into account an increase of charges related to restructuring costs and impairments of almost a €1 billion. Net income of -€8,046 million (-€660 million in H2) compared to €19 million in 2019.  However, a  negative Automotive operational free cash flow of -€4,551 million is distressing even with a positive contribution of €1,824 million in H2.

“The results for the second half of 2020 (Group operating margin at 3.5% and positive Automotive operational free cash flow) mark the first step in the Group’s recovery. The achievement of 60% of the €2 billion savings plan objectives right from the first year (compared with 30% announced), together with the implementation of the new commercial policy of the “Renaulution” strategic plan largely contributed to these results.,” said Renault.

Renault added “in accordance with the “*Renaulution” plan, the Group will continue the implementation of the actions aiming at its recovery and confirms the 2023 objectives communicated during the plan presentation.”


This recovery plan has 3 phases that are launched in parallel:

  • “Resurrection”, running up to 2023, will focus on margin and cash generation recovery,
  • “Renovation”, spanning up to 2025, will see renewed and enriched line-ups, feeding brand’s profitability,
  • “Revolution” from 2025 and onward, will pivot the business model to tech, energy and mobility; making Groupe Renault a front-runner in the value chain of new mobility. on

About Ken Zino

Ken Zino is an auto industry veteran with global experience in print, broadcast and electronic media. He has auto testing, marketing, public relations and communications expertise garnered while working in Asia, Europe and the U.S.
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