Tougher European Union (EU) controls on diesel engines could see Renault move to one shift instead of two at its Flins plant near Paris, although no redundancies are believed to be involved.
Emission levels have preoccupied the EU for some time with the European Parliament recently approving the world’s toughest carbon dioxide standards for new cars, setting a limit of 95g per kilometre as an average across all new cars sold in the region, compared with an existing limit of 130g/km.
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“It has all to do with the EU regulations and Directive on diesel, which prompts to stop production of Clio Collection cars,” a reliable source in France told just-auto.
“We are obviously not at all talking about lay-offs because it is contract work. It is a possibility [of] one shift instead of two. This has not been decided yet – this is on the table.”
Talk of any possible reduction in shifts at the Flins plant has apparently caused jitters among unions, with the CFE-CGC labour body in particular, reportedly asking to meet Renault to discuss the situation, although the automaker could not confirm if contact had been made.
Union fears are against a background of relative industrial harmony at Renault, since the new contract was inked last year agreeing all manufacturing sites would be retained in exchange for not replacing 7,500 employees and ensuring a minimum 710,000 vehicles were produced in France.
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By GlobalDataThe deal – which is now one year old – was recently hailed by Renault as a tool to increase competitiveness with the automaker also citing alliance partner Nissan’s decision to manufacture 132,000 Micra units at the Flins plant by 2016.
“With this agreement, we made the choice to safeguard our activity in France by exploring new paths to increase our competitiveness,” said Renault EVP human resources, Marie-Françoise Damesin. “One year later, the review is a positive one.
“Competitiveness gains have already been made and guarantees on activity have been provided, notably with Nissan’s decision to produce 132,000 Nissan Micras at Flins starting in 2016. With Industry Week to start in France in a few days, this initial milestone is a highly encouraging sign of vitality.
“It shows a combination of determination, labour-management dialogue and innovation can make our industry more competitive, efficient and attractive.”
Renault also highlighted the reassignment of 65,000 gearboxes to Cleon in January this year and investments in several sites, including Sovab (Société des Véhicules Automobiles de Batilly) and the Fonderie de Bretagne foundry.
The CFE-CGC union was not immediately available for comment.
