Beleaguered Renault to cut 15,000 jobs worldwide
Struggling French car maker Renaulthasannounced15,000 job cuts worldwide as part of a two billion euro (£1.8 billion) cost-cutting plan over three years.
Renault said nearly 4,600 jobs will be cut in France in addition to more than 10,000 in the rest of the world.
The group’s global production capacity will be revised from four million vehicles in 2019 to 3.3 million by 2024, the company said.
In a statement, the car maker added: “The difficulties encountered by the group, the major crisis facing the automotive industry and the urgency of the ecological transition are all imperatives that are driving the company to accelerate its transformation.”
Jean-dominique Senard, chairman of the board of directors of Renault, said: “The planned changes are fundamental to ensure the sustainability of the company and its development over the long term.”
The group, which employs 180,000 workers worldwide, announced the suspension of planned capacity increase projects in Morocco and Romania.
The group is also considering “adaptation” of its production capacities in Russia and announced the halt of Renault-branded oil-powered car activities in China.
Renault came into the coronavirus crisis in particularly bad shape. Its alliance with Nissan and Mitsubishi is a major global car player, but it has struggled since the 2018 arrest of its longtime star CEO Carlos Ghosn.
Renault reported its first losses in years in 2019.
The French government is its single biggest shareholder with a 15 per cent stake, and has been in talks on a €5bn (£4.5bn) loan guarantee.
Finance minister Bruno Le Maire said earlier this week that the group’s survival is at stake.
Despite this Renault interim chief executive Clotilde Delbos said the measures will not include a withdrawal from Formula One.
“We have said publicly and we can confirm that we remain committed to Formula One,” Delbos said.
“The fact that the FIA has capped expenses is great news for us.”
In addition to its works team, Renault currently supplies engines to Mclaren.