After experiencing historical losses, Renault France is also a little bit powerless.
According to foreign media reports, Renault Motors recently issued a statement stating that it plans to sell all 16.45 million (1.54%) shares of Daimler, the parent company of Mercedes-Benz, in order to obtain funds for a turnaround plan after a record annual loss.
Renault said that the proceeds from the sale of Daimler shares will “accelerate the financial deleveraging of the automotive business.”
In addition, Renault also stated that the company’s industry partnership with Daimler dates back more than 10 years and has not changed or been affected by the transaction.
As of press time, the latter’s share price is about 72 euros per share, so that this share can be exchanged for 1.184 billion euros in funds. This money can be called “life-saving money” for Renault, because the performance of this company in 2020 is actually too bad.
Earlier, Renault’s financial report data showed that the company’s net loss in 2020 was 8.05 billion euros, or about 63 billion yuan, which was the largest annual loss in the company’s history.
Most of these losses occurred in the first half of last year. Data shows that Renault’s operating loss in the first half of 2020 was 7.29 billion yuan; and in the second half of 2020, with the help of strategic plans such as cost reduction, the group’s turnover has been greatly improved.
In terms of sales volume, Renault sold 2.95 million vehicles in 2020, down 21.3% year-on-year.
It is worth noting that due to the chip crisis sweeping the world, Renault predicts that this year’s car production may be reduced by 100,000, and if the crisis continues, it will be even worse for the loss-making Renault.