FRANCE/US: Renault axing 7,500 jobs through 2016 'by attrition'
Renault is to cut 17% of its French workforce in the next four years to reduce costs but won't close any factories, Bloomberg News reported on Tuesday (15 January).
The move came as the European market is expected to contract for a sixth consecutive year in 2013.
Renault plans to eliminate 7,500 positions to the 2016 at its French operations, Sophie Chantegay, a Renault spokeswoman told Bloomberg. The automaker will cut 5,700 of the posts through attrition, she said.
However, Renault CEO Carlos Ghosn said the company wasn't planning any factory closings in France.
He had said separately earlier today in Detroit that the European car market would drop another 3% this year after contracting in 2012 to a 20 year low. PSA Peugeot Citroen, Ford and General Motors Co. (GM) are reducing workforces and closing plants in response to plunging demand amid recessions in the region.
“If an agreement is signed with unions, this staff redeployment would require neither a plant closing nor any forced departures,” Gerard Leclercq, Renault’s head of operations in France, said in a statement cited by Bloomberg. Renault notified unions today that the cuts were needed for its automotive operations in France to break even, he said.
Citing ACEA data, Bloomberg noted Renault’s 19% sales drop in Europe in the first 11 months of 2012 was the steepest among major producers there as industry-wide registrations fell 7.2%.
Marchionne told a Detroit press conference Europe’s volume car industry was in a painful situation, with no one making money. His request for a European Union plan to cut automaking capacity to match demand had been “ignored,” he said.
Over 500 vehicles have been updated in our live database of current and future new passenger car product over the past week, and we've added new future models....
This QUBE report from just-auto provides a comprehensive overview of the global cockpits and instrumentation sector, major suppliers, top 14 markets, technology trends and market size forecasts. Use t...
The 2013 Goodwood Festival of Speed was held between 11-14 July inclusive, with many vehicles making their global debuts....
Renault is expected to complete its joint venture agreement with Dongfeng Motor Group, China's second-largest vehicle manufacturer, this month ahead of launching production in the country next year, a...
Renault Group's global sales fell 1.9% in the first half of the year to 1.3m units, largely as the result of a 7.3% fall in sales in Europe....
Renault might have to be as patient in trying to establish electric cars on the market as Toyota was over the introduction of hybrids, a top executive said....
Renault Samsung Motors, which saw first half global sales plunge 29.3% to 58,705 units and domestic sales tumble 14.2% to make it the nation's smallest car maker behind SsangYong, has agreed a new pay...
- Volvo UK specs up seven seat XC90 redesign
- ANALYSIS: Mercedes smart brand's last chance?
- THE WEEK THAT WAS: Hobnobbing with the A-listers
- Management briefing: 48V mild hybrids (2)
- ANALYSIS: Suzuki's new brand flagship - Vitara
- Geneva show list updated
- UK: Aston Martin to reveal future models strategy
- Ricardo unveils new prototype electric motor
- Honda chief quits
- Audi plots 2020 expansion strategy
- Global light vehicle engine technologies market- forecasts to 2029
- Global vehicle lightweighting - technology, trends and the future
- LMC Automotive's European Passenger Car Production Estimates - Latest Monthly Update
- Global electrified light vehicles market- forecasts to 2018
- PLDB - vehicle cycle plan database (annual subscription)