Renault planning to cut 7,500 jobs in France

Article by Christian A., on January 16, 2013

The 7,500 job cuts at Renault’s staff in France, equivalent to about 14% of its workforce, represent a damaging blow to President Francois Hollande, who has prioritized creating and maintaining jobs as his priority as the unemployment rate reached 13-year highs. Renault is encouraging workers to agree to a new nationwide deal on pay and conditions to reduce costs and align productivity with inexpensive European sites like its Palencia plant in Spain and alliance partner Nissan's Sunderland factory in England.

A Renault spokeswoman said that the company is hopeful that around three-quarters of the cuts will be attained through normal staff turnover. Automakers throughout Europe would need to cut costs and capacity so they can still be profitable while the euro zone debt crisis and resultant government austerity measures drain consumer demand.

In 2012, auto sales in France, Spain and Italy declined to their lowest levels. Its rival, PSA Peugeot Citroen, is working hard to reverse increasing losses by terminating over 10,000 domestic jobs and shutting down an assembly plant near the French capital.

Last Friday, Honda revealed plans to reduce about 800 jobs at its plant near Swindon in southwest England because of the decreasing demand for its vehicles throughout mainland Europe.

Renault, which had about 128,000 workers around the world at the end of 2011, said that it didn’t plan any compulsory or voluntary redundancies. It also reiterated that it would not close any of its sites in France once it entered a deal with workers.

A meeting with Renault management is scheduled for Jan. 22. Macquarie Securities analyst Jens Schattner said that this is a “reasonable adjustment” considering the huge overcapacity that the (mass-market carmakers) face in Europe. It provides annual cost savings without being forced to make drastic reductions so there would likely be just limited cash out for restructuring charges.

Topics: renault, france

If you liked the article, share on:

Comments

Recommended

Recently, Autocar revealed that a Ferrari SUV is on the way, after the company continuously denied that they will not build one. And unlike the usual crossover styling, Ferrari will...
by - July 25, 2017
BMW will be releasing a limited edition 7 Series in the same way that the 3 Series and 5 Series models got their own anniversary editions from the previous years....
by - July 25, 2017
Here comes Blue Arrow, a Porsche 911 (991) Turbo S tuned by Edo Competition that is even quicker and faster than the 911 GT2 RS. Moreover, it is definitely the...
by - July 24, 2017
Earlier this year, Ford had already begun deliveries of the Ford GT. However, the company has been experiencing some delays at their facility in Canada. This means that the next...
by - July 24, 2017
BMW has given the 2018 1-Series a facelift, and they have just released a ton of new photos and a couple of videos to show us what it’s got. Nevertheless,...
by - July 24, 2017
Facebook

Youtube Channel

Tip Us
Do you have a tip for us?
Did you film an important event?
Contact us
Newsletter
Subscribe to our newsletter!
Subscribe
Galleries