Renault restructuring to cost 14,600 jobs

RENAULT is to slash about 14,600 jobs worldwide and cut production capacity by a fifth after a plunge in demand tipped carmakers into crisis.

The struggling marque will axe almost 4,600 positions in France through voluntary retirement and retraining schemes. It has no UK factories.

The cuts will affect about 10pc of Renault’s 180,000 global workforce. It has operations in 39 countries.

Clotilde Delbos, Renault’s chief executive, said: “This plan is essential.”

The company previously pledged to cut costs by €2bn (£1.8bn) over three years as the crisis hammered demand.

Renault, which is 15pc owned by the French government, said the restructuring plan would cost about €1.2bn to implement. It aims to reduce output by 700,000 vehicles to 3.3m by 2024, focusing on more profitable models such as small vans and electric cars.

Renault has been at the centre of a political storm in France over its plans to downsize at home while also seeking a €5bn government loan.

The Paris government said it would not sign off the loan until management and unions concluded talks about its French workforce and factories.

Renault, Nissan and Mitsubishi this week vowed to deepen their alliance in the wake of the pandemic. This will involve an increase in technology and production sharing.

Nissan said on Thursday it would close its Barcelona plant, which has 3,000 staff, making Sunderland its European manufacturing hub.

Separately, Volkswagen has agreed to invest €2.1bn in two Chinese electric vehicle players as it seeks to strengthen its position in the world’s biggest car market. VW will spend €1bn on a 50pc stake in state-owned Anhui Jianghuai Automobile Group, the parent of its existing partner JAC Motors. The German group will also raise its stake in an existing electric vehicle joint-venture with JAC from 50pc to 75pc.

VW will separately pay €1.1bn for a 26pc stake in electric vehicle battery maker Guoxuan High-tech, making it the firm’s biggest shareholder.