After entering a new agreement with unions, Renault is expected to soon reveal plans to produce more vehicles for Daimler or alliance partner Nissan. Renault said that it will produce 80,000 units each year for the partner brands. As a result, many French jobs are protected even as the demand for new cars declines in Europe.
Renault CEO Carlos Ghosn gave no comment on new press reports that the company’s plants in France will roll out Mercedes A- and B-class models. At Renault headquarters, Ghosn told reporters that by the end of this year and likely before the summer arrives, the automaker will be poised to divulge more information about these 80,000 units, their locations, output, and brands.
The announcement is expected to be given after several weeks or a few months at the most. Renault made a pledge to raise annual domestic production by about a third, or 180,000 vehicles, to 710,000 by 2016.
In return, the union approved some wage restraint and longer working hours as well as allowed other union concessions. Renault is also planning for the production of its Trafic commercial van to go back to northern France from Spain, while the production of several versions of its Clio subcompact car will be moved from Turkey to Flins, west of Paris.
Ghosn had given out threats that if it doesn’t reach a deal with the unions, it will transfer some production outside France. He now said that the success of the agreement will partly depend on reeling back customers for Renault's own brand in a declining European market.
Furthermore, Renault promised not to shut down any factories or announce compulsory lay-offs within the next three years. It has plans to terminate about 7,500 domestic jobs over the same period through attrition. In a newspaper interview, Ghosn said that this deal is expected to lead to annual savings of around 500 million euros ($651 million).