Sunday, February 23, 2020

Renault rebounds as Delbos outlines disposals, cost cuts

Feb 14. 2020
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By Syndication Washington Post, Bloomberg · Angelina Rascouet 

Renault shares rebounded after acting Chief Executive Officer Clotilde Delbos said the carmaker would consider asset sales and plant closures as part of a cost-cutting plan.

The company is conducting a strategic review of assets in China, and expense reductions could include factory closures in France, Delbos told reporters at a press conference near Paris Friday. Renault aims to lower structural costs by 2 billion euros ($2.2 billion) over three years.

"We don't have any taboos, and we don't exclude anything," Delbos said. "Considering the situation of the global market and considering that we maybe had too much capacity for volume goals that were higher than what we have today, we don't exclude any taboo, whether in the world or in France."

The stock rose as much as 4% following her remarks, after tumbling 4.7% to a seven-year low earlier Friday when the carmaker reported disappointing 2019 results and announced plans to slash its dividend.

Slumping sales in key markets and a dismal performance at long-time partner Nissan Motor pushed Renault to its first annual loss since the financial crisis. Nissan's decision Thursday to scrap its year-end dividend represented a big financial hit for Renault, which owns 43% of the Japanese carmaker.

 

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