Renault Is Set to Unveil 15,000 Job Cuts Worldwide

Renault Is Set to Unveil 15,000 Job Cuts Worldwide

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 aboutWikiFX, you can visit wikifx news official website.

  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 wouldnt sign the check until he had examined the companys strategy site by site, job by job, with closures being a last resort. At the same time, he said Renaults manufacturing capacity is roughly three times whats 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 governments 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. Renaults incoming CEO, Luca de Meo, is scheduled to take the helm in July.