Renault to cut 15,000 jobs as part of major cost cuts
French giant poised to close plants and simplify line-up as part of major initiative to stem recent heavy losses
Group Renault will slash its fixed costs by more than €2 billion euros (£1.7 billion) in the next three years, which will lead to the loss of more than 15,000 jobs worldwide.
The French firm recently posted heavy losses, and says that the ‘transportation plan’ is needed to help it to weather both “the major crisis facing the automotive industry and the urgency of the ecological transition”. Key to the plan will be increasing efficiencies by simplifying processes and reducing components.
Group Renault’s operations in France will be focused on developing ‘strategic business areas’ including electric and light commercial vehicles, the ‘circular economy’ and new innovations. The moves planned will lead to the loss of 4600 jobs in France, and more than 10,000 other positions in the rest of the world over the next three years.
Group Renault’s plan includes saving €800 million (£710 million) by improving production efficiencies and cutting engineering costs, in part through the adoption of the ‘leader-follower’ model recently announced by the Renault-Nissan-Mitsubishi Alliance.
That new Alliance agreement will also help Group Renault to slash vehicles design and development costs and reduce the number of components used through increased levels of standardisation in its models. It said optimising production costs will save the firm €650 million (£577m).
It will also adopt increasing use of digitalisation in its new engineering projects, and ‘right-size’ industrial capacities with an adjustment of production. That will involve reducing Group Renault’s global production capacity from four million vehicles to 3.3 million by 2024.
It has scrapped plans to expand the capacity of its plans in Morocco and Romania, will look to adapt the use of its plans in Russia – which also include Lada’s operations – and will study rationalising global gearbox manufacturing.
Renault is consulting on the future of its Douai and Maubeuge plans in France, with the plan to create an ‘optimised’ centre of excellent for electric and light commercial vehicles.
It is also looking at the future of several other plants, including an “open reflection” on converting the use of Alpine’s Dieppe plant once production of the A110 ends. However, Autocar understand that the future of the Alpine performance brand itself remains safe for the time being.
Renault has already confirmed plans to withdraw from its Chinese joint venture operations.
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