Renault slows down its projects and cuts 15,000 jobs worldwide
Employees and union representatives block the entrance to the Renault factory in Choisy-le-Roi, near Paris, on May 29, 2020, after the announcement of its closure by 2022. REUTERS / Charles Platiau
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Renault detailed on Friday, May 29, its plan to cut 15,000 jobs worldwide, including nearly a third in France, part of its recovery plan of two billion euros, announced the day before to unions. The automaker was already in trouble before the Covid-19, but the current crisis has made it worse. Its Japanese partner Nissan also announces thousands of job cuts.
It is time for austerity within the Franco-Japanese alliance. All week, Renault , Nissan and their partner Mitsubishi unveiled measures to significantly reduce their capacities and production costs. Since 2019, they have been losing money, particularly lagging behind in the Chinese market. A situation made worse by the consequences of the virus.
In the end, there are many sites that will close or be converted, particularly in Europe, such as Barcelona, a century-old factory for Nissan. The company thus attracted the wrath of the Spanish authorities.
►Also read: Automobile: why Renault is playing for its survival
Only " Choisy " closed, reflection on Caudan, Dieppe, Maubeuge and Flins
Renault for its part suspends its expansion projects in Morocco and Romania, puts the brakes on Russia. In France, In France, the plan should affect four sites: Caudan (Morbihan), Dieppe (Seine-Maritime) and Maubeuge (Nord). The company is also reflecting on the future of its enormous Flins (Yvelines) factory, which manufactures the Zoé and the Micra.
But " on our 14 industrial sites ", only one will close its doors, " it is Choisy for which we will promote skills in the Paris region ", however assured the president of the group, Jean-Dominique Senard, during a conference Press. " This project is vital, " said Executive Director Clotilde Delbos Friday morning on this restructuring. The diamond brand claims to have spent too much, invested too much and claims to prioritize profitability rather than volumes .
Difficult negotiations with unions and shareholder state
Negotiations promise to be close with the unions. The CFDT of the Renault group has already denounced a " project of social breakdown and deindustrialisation ", affirming that it " will be heard by all possible means ".
These negotiations should take place with the State shareholder, as an arbitrator or conciliator. The government, which will try to save many other companies, has only one weapon in its pocket in the Renault case : a guaranteed loan of 5 billion euros, which will be discussed early next week in Bercy .
►Read also: In Dieppe, employees of the Renault factory "shocked" by rumors of closure
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- Employment and Work
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