Renault profits slump as competition intensifies

Paris: French automaker Renault said Thursday that the tough retail and commercial van market in Europe had squeezed profits although it was able to m...

Paris: French automaker Renault said Thursday that the tough retail and commercial van market in Europe had squeezed profits although it was able to maintain profitability better than most rivals.

Excluding exceptional items Renault saw its first half net profit slump 69 percent to 461 million euros ($528 million).

However it suffered 11.6 billion euros in exceptional losses due its partner Nissan, including the 9.3 billion it announced at the beginning of the month due to switching the accounting treatment of its Nissan stake so it will no longer impact its operating results.

Renault rescued Nissan in 1999 and the two automakers have held stakes in one another since, in a rocky partnership that never saw them merge.

Heavily indebted Nissan has hit another rough patch, posting a net loss of $4.5 billion for the financial year to March 2025 and announcing plans to cut 15 percent of its workforce.