Economy

Renault, Volkswagen post losses in H1

Pandemic reduces automotive companies' sales, revenues

Gokhan Ergocun   | 30.07.2020
Renault, Volkswagen post losses in H1

ISTANBUL

French automobile manufacturer Renault Group and German Volkswagen posted losses in the first half of 2020, due to the measures imposed to stem the coronavirus outbreak.

Renault's sales dropped by 34.9% to 1.26 million units in the January-June period, according to a press release issued on Thursday.

Its revenues decreased by 34.3% to stand at €18.4 billion ($21.6 billion) in the six-month period, while net income was minus €7.4 billion.

"The Group confirms its target to achieve €600 million of cost reduction this year, representing 30% of the 2022 plan project cost savings," the press release said.

In May, the group announced that it will cut 15,000 jobs globally to reduce costs amid the pandemic.

Meanwhile, Volkswagen's sales also decreased by 23.2% to €96.1 billion in the first half of 2020, while deliveries posted a drop of 27.4% to 3.9 million units year-on-year.

The company's earnings before tax, which was €9.6 billion in the same period last year, was minus €1.4 billion in this year's first half.

Since first appearing in China last December, the novel coronavirus has spread to at least 188 countries and regions. The US, Brazil, India, and Russia are currently the countries hardest hit in the world. The pandemic has deeply affected economic activities.

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