French car manufacturer Renault on Thursday reported a net loss of €11.185 billion ($12.81 billion) for the first half of the year, compared with a net income of €1.293 billion in the same period last year.

Renault expects its operating margin to rebound in the second half, its finance chief said on Thursday, as a first half net loss due to a Nissan writedown and tough market conditions highlighted the challenge facing its new CEO Francois Provost.

Renault said it appointed Francois Provost as its new chief executive, turning to a company veteran as the French carmaker navigates a tough automotive market. Provost, who has been with the group for more than two decades and was most recently head of procurement,