The French car maker Renault is making good progress with its austerity program. The group has reduced the breakeven point by 30 percent, said CEO Luca de Meo on Thursday in front of journalists near Paris. The group has achieved the goal of reducing costs by four billion euros. The Renault share rose around four percent in the afternoon in Paris.
Renault had made a record loss of eight billion euros in the Corona crisis in 2020. The pandemic exacerbated existing home-made problems – de Meo had stepped in to whip up the returns for the French again. The carmaker is benefiting from the rising car prices on the market, de Meo expects further price increases.
Further problems expected
In the year that has just started, the shortage of chips will continue to burden businesses, said de Meo. “There will be turmoil all year round, the first half of the year will be worst,” said the manager. According to him, the situation should not be worse in 2022 than last year. According to de Meo, Renault was unable to build around 500,000 cars as planned last year due to delivery problems with electronic components.
At the height of the crisis, Renault had been granted a state-supported credit line in the amount of five billion euros. The company had used four billion of this and had already paid back a billion. This year, CFO Clotilde Delbos wants to repay another billion euros. In 2024, the credit should be completely worn out. (dpa / swi)
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