Renault Suffer Massive Losses During The First Half of 2009

Renault, the French automaker has taken a massive loss of over 2.71 billion euros during the first half of this year. Overall sales have decreased 23.7 percent compared to the same period last year to a total of just over 15.99 billion euros. The company believes the current global economic crisis is the primary cause for deliveries to decrease and buyers choosing models that are cheaper and thereby less profitable for the french marqee.

The loss in the first half for Renault was largely due to losses that were made at Renault’s associate companies: Nissan taking a loss of 1.22 billion euros, AB Volvo losing another 196 million euros and Russia’s Autovaz with a 182 million euro loss. Automakers all over the world are struggling to save money by running down their inventories and cutting costs as they battle to the collapse in large purchases and the swict to more fuel efficient smaller vehicles during this economic crisis.

In a press statement, The company stated that the outlook was getting better and the market should improve during the second half of the year where they expect to show an overall decrease of only 8 percent. As part of its cost cutting measure the company has cut their inventory by 16 percent to 4.4 billion euros during the first half of the year. Carlos Ghosn, CEO of Renault, has said the company has been preparing for the period after this crisis with mass marketing for their zero-emission automobiles from 2010.