The year 2016 began with a particularly unpleasant episode for the French car brand Renault. More specifically, the situation became more difficult on Thursday, January 14, 2016. After a disastrous announcement, the company’s share price fell by about 20%, ending the day with a 10.28% decrease to 77.75%
Renault shares fall on the Paris Stock Exchange
It was after an announcement made by the CGT or Confédération Générale du Travail and by the CFDT or Confédération française démocratique du travail that things became more difficult for Renault. The two entities then reported that searches had been undertaken by the DGCCRF or Direction générale de la concurrence, de la consommation et de la répression des fraudes. It should also be noted that the company has confirmed this revelation. These visits would have concerned, among other things, the head office, but also the Guyancourt and Lardy sites. And if rumours are to be believed, these steps would be linked to the scandalous affair of the “tampered” engines on the side of the German brand Volkswagen. For its part, Renault has not failed to report that no faking has been reported on its diesel engines.
Moreover, it should also be noted that in December, the company announced its intention to invest around 50 million euros to reduce the gap in terms of polluting emissions from its models. This would be done not only in real life situations, but also by simulating the conditions of approval.
A few words about Renault
The Renault brand, 19% of whose shares are state-owned, is the second largest car manufacturer in France. Its cars are sold in more than 125 countries around the world. Since 1999, the brand has been associated with the Japanese brand Nissan, in which it holds nearly 43% of the shares. Together, the two companies form a powerful automotive group, ranking 4th in terms of volumes. The brand’s statistics are very advantageous. Based on its latest annual statistics (2014), more than 2.7 million cars were sold, with a turnover of more than €40 billion and a net result of nearly €1.90 billion.