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With Nissan dragging it down, Renault predicts a worsening year

PARIS — Renault warned revenue may decline this year, scrapping a previous goal, after first-half profit was hit by weakening car demand and an earnings collapse at alliance partner Nissan in the wake of the Carlos Ghosn scandal. Net income slumped by more than half to 970 million euros ($1.08 billion) in January-June as revenue fell 6.4% to 28.05 billion, the French carmaker said on Friday. Operating profit also dropped 13.6% to 1.65 billion euros. "Given the degradation in demand, the group now expects 2019 revenues to be close to last year's," Renault said — abandoning an earlier pledge to increase revenue before currency effects. A broad-based auto sales 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. Their former alliance boss is now awaiting trial in Japan on financial misconduct charges he denies. Renault's bottom line was hit by an 826 million-euro drop in earnings from its 43.4%-owned partner. Nissan is cutting 12,500 jobs globally after an earnings collapse that it is keen to blame on Ghosn's leadership. But Renault's own performance - reflected in an operating margin that declined to 5.9% from 6.4% the year before - compares less favorably with domestic rival PSA Group. The Peugeot maker bucked the downturn with a record 8.7% profit margin unveiled on Wednesday. Alliance tensions flared after Ghosn's November arrest, worsened when Renault tried in vain to merge with Nissan then Fiat Chrysler, and may be affecting operational performance, investors fear. Citi analyst Raghav Gupta-Chaudhary flagged a lower-than-usual 258 million euros in joint purchasing savings for Renault. "We thought this would be weak in light of the well-documented difficulties with the alliance," he said. Renault blamed falling sales in France, as well as Turkey and Argentina, for a 7.7% revenue drop at its core automotive business, whose profit margin slid to 4% from 4.5%. Operating free cash flow also suffered, coming in at a negative 716 million euros as investment jumped by 742 million euros to 2.91 billion. Renault, which is counting on model launches including a new Clio mini to boost performance in the second half of 2019, nonetheless reiterated pledges to deliver positive full-year cash flow and a margin close to 6%. Renault shares were down 0.5% at 52.02 euros as of 0800 GMT in Paris, after initially falling as much as 2.7%.

Watch Carlos Ghosn's news conference live from Beirut

The former head of Nissan-Renault says he's speaking out to clear his name and shed light on an unjust system of Japanese justice. Timeline: The rise, fall and flight of Carlos Ghosn Follow our Adam Morath, who has been maintaining a running summary on Twitter:   This content is hosted by a third party. To view it, please update your privacy preferences. Manage Settings. Government/Legal Nissan Renault Carlos Ghosn

Nissan Leaf electric vehicle goes on sale in Mexico

Nissan chief Carlos Ghosn may not be intimately familiar with the Dean Martin 1962 classic South of the Border, but he may as well start crooning the standard now. The Japanese automaker said this week that the Nissan Leaf will officially be the first mass-produced battery-electric vehicle to be sold in Mexico. So break out the horn section. Nissan will start selling the Leaf through its Mexico City dealership network and is touting features such as the car's fast-charging port. That feature allows the car to be 80-percent charged in about a half hour. Nissan and the Mexican government are also working on an "electric corridor" of charging stations between Mexico City and Cuernavaca, which is about 55 miles to the south. There will also be "charging zones" in various districts throughout Mexico City, making it easier for the newly inaugurated EV drivers to charge up in town. Nissan has been working on Leaf brand exposure to Mexico City for years, sending the first batch of 100 all-electric Leaf taxis to Mexico starting in the fall of 2011. Last month, Nissan had its best ever month of sales in the US, moving 3,117 Leafs in May and the company has sold over 115,000 Leafs around the world. Check out Nissan's press release below. Nissan becomes the first company to sell a 100% electric vehicle in Mexico Nissan LEAF arrives in Mexico and becomes the first 100 percent electric vehicle to be comprehensively marketed in the country. The car of the future is already part of the present with more than 115,000 global sales. Nissan, the leader company in electric vehicles, strengthens its commitment to promote Zero-Emission mobility by opening charge centers distributed in Mexico. MEXICO CITY – Nissan today announced the launch of LEAF, the first 100 percent electric vehicle to be marketed in Mexico. The presale starts today and will continue until its arrival on June 30. Nissan LEAF is the first zero-emissions vehicle marketed in Mexico, confirming the leadership and the promise of the Japanese company to transform traditional driving into a new silent experience. "Nissan LEAF is a reality in the Mexican market," said Airton Cousseau, CEO of Nissan Mexicana. "We are proud to be the pioneer company to introduce the first zero-emissions vehicle leader in sales worldwide in Mexico.