Renault has said it would extend short-time working until the end of 2010 in a bid to prevent layoffs as car demand remains weak.

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In a press release issued after a meeting with unions, Renault said that its business outlook remained “uncertain” and it was not clear when the nascent economic recovery would boost demand for cars.


The scheme, which began in February and was expected to run for a year, requires managers, office staff and factory workers to work fewer days than normal.


Renault said its factories could be closed for up to 45 days next year, a comparable level to this year, Reuters reported.


The automaker also said it would consider moderate pay rises next year, something that it could not do last year given the severity of the downturn.

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