SPAIN: Renault to cut 200 jobs after Modus sales disappoint - union
Renault will dismiss 200 workers at its Valladolid Modus factory after announcing it will cut the supermini's production by 13% on the back of slumping global sales, Joaquin Arias Gallego, secretary general for Renault at Spanish union Comisiones Obreras (CCOO), told just-auto.
On Thursday, Renault Spain president Juan Antonio Fernandez de Sevilla said Renault needed to cut output to 1,000 daily units from 1,150 units, a move that will require the removal of a third evening shift. During a Renault Spain convention, he acknowledged that the Modus is selling below the company's initial estimates.
Gallego, which was present at the meeting, said unions are upset about the French auto giant's failure to gauge the car's sales potential. Production will be cut 20% to 900 vehicles and require 200 redundancies at the 4,200-strong factory, he said.
Renault intended to sell the Modus "in 168 countries by January and it is only selling in 58, " Gallego noted. He added: "They got ahead of themselves. The commercial rhythm has not matched demand."
Renault did not immediately return phone calls seeking comment.
In February, the company cut Modus output by 5% and said it would rejig its commercial strategy after sales began to disappoint.