French carmaker Renault to cut 15000 jobs worldwide
- by Grant Boone
- in Sports
- — May 30, 2020
As for the Dieppe plant, home to the Alpine A110, Renault plans a reconversion after production of the sports vehicle ends.
Speaking on French television, a French labour leader briefed on the plans said numerous cuts in France would come through voluntary layoffs or retirement.
Renault SA plans to eliminate about 14,600 jobs worldwide and lower production capacity by nearly a fifth as part of cost reductions aimed at outlasting the downturn that has rocked the global auto industry.
Faced with a slump in demand that has been exacerbated by the coronavirus pandemic, the French carmaker detailed plans on Friday to find 2 billion euros ($2.22 billion) in savings over the next three years. It is seeking more clarity on how some big factories will be reorganized and further guarantees on jobs before it gives the green light, according to a source familiar with the matter.
However, after announcing Renault's restructuring measures to combat the downturn in the global economy, interim Chief Executive Coltilde Delbos said the company plans to continue with its F1 project.
Even before the current crisis, Renault had been rocked by the departure of emblematic CEO Carlos Ghosn, who was arrested in Japan in November 2018 over allegations of financial misconduct, including under reporting salary and misuse of company assets at Renault partner Nissan.
Renault is in talks with the French government to obtain a 5-billion-euro state-backed loan, but the French government has made this conditional on guarantees for workers and production to remain in the country.
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".
He called for more protests to put pressure on Renault's leadership.
On Tuesday Macron unveiled an 8 billion euro rescue package for the auto industry.
Streamlining vehicle design and development: reducing component diversity, increasing standardization, Leader - Follower programs within the Alliance. The company pledged to study a reconversion of Dieppe, the future of Caudan (Fonderie de Bretagne) and examine Maubeuge and Douai.
The company has hired former Volkswagen executive Luca de Meo to take over as CEO, but he can not begin working until July because of a non-compete clause.
