Renault SA is preparing to unveil a plan to eliminate 15,000 jobs
worldwide over three years as part of cost reductions aimed at
outlasting the downturn that has rocked the global auto industry,
according to a union representative.To get more news about
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The plan includes 4,500 jobs in France that will be cut through
attrition and voluntary retirement, Franck Daout, a spokesman for the
CFDT union, said on BFM Business Thursday following meetings with
management. The carmaker has scheduled an announcement Friday on how it
will lower fixed costs by 2 billion euros ($2.2 billion).
“All the job reductions and reorganization of sites will take
place through negotiations with the government and unions,” Daout said,
adding that management “really emphasized this.” A spokesman for Renault
declined to comment.
Earlier in the week, Daout said five sites were threatened in
France with possible closure including Choisy-le-Roi, Dieppe, Flins,
Caudan (Fonderie de Bretagne) and Maubeuge.
The measures will cap a decisive week for Renault and its Japanese
partners Nissan Motor Co. and Mitsubishi Motors Corp. as they navigate a
slump in consumer demand and factory shutdowns spurred by the
coronavirus pandemic.
The French carmakers plan comes on top of one by the three-company
alliance to lower development and production costs and another by the
government in France to boost vehicle sales with consumer incentives and
a cash-for-clunkers scrappage program.
Renault has been at the center of a political maelstrom in recent
weeks over its plans to downsize in France while at the same time
seeking a state-backed loan of 5 billion euros to bolster reserves.
French Finance Minister Bruno Le Maire warned Thursday he wouldn‘t sign
the check until he had examined the company’s strategy “site by site,
job by job,” with closures being “a last resort.” At the same time, he
said Renault‘s manufacturing capacity is roughly three times what’s
needed this year.
The government is Renaults most powerful shareholder and has
representation on its board. In exchange for the auto-industry stimulus
package, the state has called for manufacturers to commit to keeping
production and research in France. Renault and rival PSA Group have
pledged to increase local production of electrified vehicles and
components.
“If we do nothing, Renault is in danger,” Le Maire has said. While
pledging to stand by the company, he has urged the automaker not to
close the Flins factory and give careful consideration to the situation
at Maubeuge and Douai.
To qualify for the government‘s support, Renault scrapped its
dividend. It burned through 5.5 billion euros in the first quarter,
bringing its liquidity down to 10.3 billion euros at the end of March.
Renault’s incoming CEO, Luca de Meo, is scheduled to take the helm in
July.
The Wall