Renault moves to end losses
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by Robin Meezes
• A series of cost-cutting measures including rationalisation of manufacturing facilities, part numbers and distribution costs should help Renault VI back into the black this year after another negative set of results for 1997, according to chairman and chief executive officer Shemaya Levy.
Speaking in Paris last week, Levy revealed net losses for 1997 of FFr336m (1,33.8m)—a marked slowdown in losses from the 1996 level of FFr791m (f,79.7m).
Market share in Europe fell slightly from 1996, finishing at 10.7" for vehicles in the 5-16 tonne sector and 11.6% for the over-lb-brine sector, although European sales rose from fir19.9bn (t2bn) to FFr20.75bn (E2.09bM in the same period.
The company's overall debt has now fallen from Hr4.61m (I.463m) at the end of 1996 to FR-4.2bn („2423m).
Levy predicts a return to profit during 1998 and stresses that the company's order book is now 50% up compared with last year's figures. "1997 showed a clear turnround in trends; 1998 will bring us back into the black," he says.
Levy is also determined to scotch rumours of any possible takeover, "Renault VI is not for sale," he says.