August 6, 2020
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Renault workers protest carmaker's plan to lay off nearly 15,000 jobs

Renault workers protest carmaker’s plan to lay off nearly 15,000 jobs

AliExpress WW

Workers gathered outside a Renault plant in a suburb of Paris after the company announced plans to lay off 15,000 employees worldwide, with about a third of the cuts in France as part of a plan to cut costs by 2 billion euros.

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On Friday, a rally was held near one of the company’s factories in Choisy-le-Roi. This happens a day after people burned tires near the Nissan factory in Barcelona to protest the closure of the plant. Both automakers are part of a long-standing alliance, which also includes Mitsubishi Motors.

Earlier that day, the French automaker submitted a draft restructuring plan containing measures, including job cuts and production capacity reductions of almost one fifth. The cuts are designed to save Renault 2 billion euros over three years, as it tries to deal with the serious crisis faced by the automotive industry. These measures will affect just under 10 percent of the company’s global workforce — nearly 4,600 posts will be cut in France, and more than 10,000 additional posts will be eliminated elsewhere.

“In the face of uncertainty and complexity, this project is vital to ensure a stable and sustainable work with customer satisfaction as a priority.” Clotilde Delboss, interim CEO of Renault, said in a statement.

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In addition to job cuts, the French group, which is 15 percent owned by the government, said it wants to reorganize operations at some of its plants, including those located in Flins and Guyankur, while other plants will face “Strategic review.”

The basic plan also suggests that Renault’s global production capacity will be reduced to 3.3 million cars in 2024 compared to the current four million. Renault will also have to suspend its expansion plans in Morocco and Romania, and it will conduct an “adaptation study” of its production facilities in Russia.

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Renault is seeking a 5 billion euro guaranteed state loan to stay afloat during the coronavirus pandemic. Although the French government acknowledges that the company may “disappear” in times of crisis, it has not yet approved the deal. Earlier, French Finance Minister Bruno Le Mare said that the decision on the funds depends on the obligations of the company, including electric vehicles, fair treatment of subcontractors and high-tech activities at home.

To learn more about economics and finance, visit the RT business section.


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