Renault will cut 15,000 jobs and cut its production by 20%

Renault will cut 15,000 jobs worldwide. In the photo, a group headquarters in France.

After announcing on Wednesday the new strategic plan of the Renault-Nissan-Mitsubishi Alliance, and that yesterday Nissan confirm its roadmap for the future that includes the closure of its plants in Catalonia, this Friday has been the turn of Renault which has also released a adjustment plan. With the new evolution map, the rhombus mark intends to downgrade 2,150 million euros its annual structure of costs.

For it will reduce 20% your level production in three years, going from nine million cars to five million, which in turn will mean the abolition of some 15,000 jobs in the world (8% of the workforce), without layoffs, of which 4,600 will be in France. They also announced that they must undergo a price discipline.

Jean Dominique Senard, president of the Alliance, and Clotilde Delbos, general manager of the brand, presented new proposals to achieve a strong financial base with which to face a complicated future. The reduction of fixed costs, the restructuring of production levels and the relocation of employees are part of the new challenge.

Waiting for Luca de Meo

“The current context does not help, with the emissions regulations that have been restricted in recent years (especially in Europe) and the cirisi caused by the pandemic of the covid-19 have led to limit the economic model and they have impacted a reduction in the market, “he explained. Delbos. The brand offered poor results in 2019when for the first time in ten years he had to fit losses of 141 million euros, that is why Delbos recognizes that “that is why we need a execution discipline of this new plan. “

For this, both have invoked the figure of Luca de Meo (ex-president of Seat) who will take up the post of CEO of the company next 1st of July. “

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The French brand will apply “measures of reconversion, of mobility internal and voluntary departures“The announced cut does not explain the extent to which it will continue to use or not interim workers with temporary contracts. Senard He noted that “each one of the decisions we have taken has been deeply thought through. They are difficult but we believe they are the right ones. We could not continue to endure the fcurrent ragility and therefore we need an action offensive, but with serenity. “

Renault It will suspend the projects it had on track to increase its manufacturing capabilities in Morocco and Romania, will adjust the Russia and will proceed to a “rationalization” of its gearbox plants around the world. You must reformulate the strategy of many factories and despite the fact that Senard and Delbos they said that they were not going to close any immediately, they did recognize that some of them must be converted, a job they will do with a process of agreement in agreement with the union representation and with the authorities.

Reconversion and almost closing of plants

Renault’s flagship factories in France, those of Douai and of Maubeuge, in the north of the country near the Belgian border, will form a “center of excellence “, and while the first will from 2021 assemble electric vehicles (for which the brand will manufacture a 100 kW battery on French soil), the second will continue to be dedicated to vans, assuming the workload of the ENV200 that until yesterday was still occurring in the pBarcelona’s Lanta de la Zona Franca.

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The case of the plant Alpine, in Dieppe (Northwest of France), will deserve a separate study in which Luca de Meo will have a lot to say. His experience in managing and creating ‘special projects’ such as Abarth with Fiat and Cupra with Seat, guarantee the possible future of Alpine. The factory will be the subject of “reflection” when that sports car reaches the end of its cycle.

The activities of Choisy le Roi, whose future is on hold even though the French media points to a closure, will move to that of Flins, which will stop assembling vehicles when production of the Zoe electric is ended and will become “a circular economy ecosystem”. Finally, there will be a “strategic review” to define the destination of the facilities of the Fonderie de Bretagne. These three plants are the ones that a priori will stop operating within a two-year horizon.

International cut

Renault did not need to what extent will it affect the other countries where it has activity cut staff from 10,000 employees, which was linked to the three lines of action of the fixed cost adjustment program. The idea of ​​the proliferation alliance of common platforms to develop a leading car That they serve to create models for all brands is the key. “With this system we will be able to manufacture all the models in the same factory, obtaining great savings and production benefits,” explained the general director. The rhombus brand believes that applying its adjustment it will cost you a few 1,200 million euros.

The first line of action of the plan, with the objective of 800 million euros, goes through an improvement of the efficiency in engineering, which goes through a streamlining of vehicle design (with the reduction of components or greater standardization) and for locating “strategic technologies with great added value” in their centers in the Paris region.

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The second, with 650 million euros, is the optimization of your device industrial; and the third, with 700 million, affects general and marketing expenses, which should decrease, among other things, with greater recourse to digital tools.

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