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Renault cuts 2019 revenue outlook

French carmaker Renault on Friday cut its 2019 revenue outlook, on the back of falling demand and tough conditions within the automotive industry. Renault said it was now expecting 2019 revenue to be close to last year's level, down from its previous full-year revenue guidance. Net income slumped by more than half to 970 million euros ($1.08 billion) in January-June as revenue fell 6.4 percent to 28.05 billion, the French carmaker said on Friday. Operating profit also dropped 13.6 percent to 1.65 billion euros. The global auto industry has been hit by China's slowing economy and a trade dispute between Beijing and Washington. A broad-based downturn has rattled the sector, prompting profit warnings and compounding challenges for Renault and Nissan as they struggle to turn the page on the Ghosn era. Earlier this week, Renault's partner Nissan unveiled its biggest restructuring plan in a decade, while Aston Martin cut its 2019 volumes forecast.

Tata Motors blames JLR for poor sales

Tata Motors plunged back into the red in the first quarter of 2019-20 with India's number one vehicle maker on Thursday blaming the losses on lower sales by its luxury Jaguar Land Rover brand. Tata said it lost 36.99 billion rupees ($536 million) in the three months up to June 30, up from a loss of 19.02 billion rupees a year earlier. Tata Motors chief executive Guenter Butschek said "the continued slowdown across the auto industry due to weak consumer sentiments" had hit sales of Jaguar and Land Rover. Tata Motors said its revenue fell by 7.7 percent, but record sales in Britain helped offset the poor market. Rating agency Fitch also downgraded Tata Motors, citing risks to its "profitability and cash generation over the next two-three years". "With China stabilizing and an exciting product lineup, JLR expects to return to growth soon," Butschek added. The company is now investing in electric cars in a bid to rejuvenate its image.

India to lose up to 1m automotive workers

Nearly one million people might lose employment in India if the ongoing unprecedented slowdown in the country's auto industry continued, president of Automotive Component Manufacturing Association of India Ram Venkataramani said on Wednesday. On the performance of India's auto component industry in the financial year of 2018-2019, he said that there was a "crisis-like situation". "The automotive industry is facing an unprecedented slowdown. The vehicle sales in all segments have continued to plummet for the last several months," Venkataramani said. Considering the auto component industry grows on the back of the vehicle industry, he said, a current 15 percent to 20 percent cut in vehicle production has led to a crisis like situation in the auto component sector. "If the trend continues, an estimated one million people could be laidoff," Venkataramani said.

Nissan to axe jobs as net profit plummets

Japanese carmaker Nissan said Thursday it would cut 12,500 jobs and announced a plunge in quarterly net profit. Employees at factories overseas that are not turning a profit will lose their jobs, said Nissan CEO Hiroto Saikawa. Nissan said net profit slumped nearly 95 percent in the April-June quarter due to falling sales and growing costs. The automaker's bottom line profit dropped to 6.4 billion yen ($59 million) for the three months to June, from 115.8 billion yen last year, on sales down 12.7 percent at 2.37 trillion yen. Nissan said it forecasts its group net profit to fall 46.7 percent to 170 billion yen and its group operating profit is expected to decline 27.7 percent to 230 billion yen on sales of 11.3 trillion yen, down 2.4 percent.

Motoring - Agencies

(China Daily 07/29/2019 page19)