Renault to cut down 15,000 jobs amid coronavirus outbreak
Renault has said it was launching talks with unions to restructure several French car plants, potentially leading to closures, as it confirmed plans to cut around 15,000 jobs worldwide.
Faced with a slump in demand that has been exacerbated by the coronavirus crisis, Renault is aiming to find 2 billion euros ($2.22 billion) in savings over the next three years as it shrinks production and hones in on key car models.
“We thought too big in terms of sales,” Interim Chief Executive Clotilde Delbos told a conference call, adding the firm was “coming back to its bases” after investing and spending too much in recent years.
The company plans to trim its global production capacity to 3.3 million vehicles in 2024 from 4 million now, focusing on areas such as small vans or electric cars as it freezing manufacturing expansion in countries like Romania.
The company - due to bring ex-Volkswagen executive Luca de Meo on board as CEO in July - said it would also slash costs by cutting the number of subcontractors in areas such as engineering, reducing the number of components it uses and shrinking gearbox manufacturing worldwide.
Nissan
Japanese partner Nissan, alongside which it hopes to find additional savings by producing more cars jointly, this week also outlined a plan to become smaller and more efficient.
Renault said the restructuring measures, including job cuts and employment transfers that would affect just under 10% of its global workforce, would cost 1.2 billion euros.
The group, which is 15% owned by the French state, said some plants like the one in Flins, close to Paris, where it makes its electric Zoe models, could cease to assemble cars and center on recycling activities, instead.
Six sites in all, including a component factory in Brittany and the Dieppe factory where the group’s Alpine cars are made, will be under review.
Unions in France have said they feared the measures could lead four sites to shut, though outright closures are likely to lead to a public backlash.
The government has said it will not sign off on a planned 5 billion euro state loan for Renault until management and unions conclude talks over jobs and factories in France.
Renault was already under pressure when the coronavirus pandemic hit, posting its first loss in a decade in 2019. Like its peers, it is now trying to juggle a slump in revenue with industry-wide changes such as investment needed to produce more environmentally friendly vehicles.
(Source: Reuters)
‘Arab Nelson Mandela’ released after 40 years in France
Israeli fans clash with French supporters at Paris football match
Protests held in Paris against pro-Israel gala organized by far-right figures
Israeli embassy shooting in Jordan leaves gunman dead, 3 police injured
VIDEO | Paris march in support of Palestine women
VIDEO | ICC issues arrest warrants for Israeli prime minister, ousted regime war minister
120 Palestinians perish as Israeli war machine keeps ravaging Gaza
VIDEO | Struggles of Palestinian women amidst war, displacement
VIDEO | Hezbollah rains attack drones down on elite Israeli brigade
VIDEO | US biased mediation fails
Leader: All captains of criminal, Zionist, terrorist gang must be prosecuted
PressTV NEWSLETTER
now
This makes it easy to access the Press TV website
