Ronaldo will cut 14,600 jobs as it destroys the carnavirus in the auto industry

The company announced on Friday that fixed costs would be reduced by 2 billion (২ 2.2 billion) over the next three years. It also plans to reduce the number of cars manufactured each year from 4 million to 3.3 million by 2024, and will stop selling Renault-branded vehicles in China. The plan will cost about ২ 1.2 billion (৩ 1.3 billion), the agency said.

Renault (RNLSY) As well as being part of the largest carmaking alliance in the world Nissan (NSANF) And Mitsubishi (MBFJF). Earlier this week, companies Announced They will build fewer models, share manufacturing facilities, and focus on the existing geographical and technological strengths of each car manufacturer in an effort to reduce costs in the wake of the carnivirus epidemic.

Reno said changes were needed because of the global automotive market downturn, the scale of the economic downturn from the epidemic, as well as stringent emissions standards. The company was in trouble before the coronavirus reported its worst financial performance in a decade last year, with net profit down 99% to just 19 19 million (21 21 million).

In a call with analysts on Friday, Acting CEO Clotilde Delbos said, “The Covid crisis has only exacerbated the existing situation.” “This unfavorable economic environment showed the limitations of our business model, which placed bets on unprecedented market growth in emerging markets and therefore had record sales,” he added.

Shares of Renault have fallen nearly 50% for the year and the company is in talks with the French government, which owns 15% of the shares, on the condition that it will be over 5 5 billion (5. 5.4 billion). Under former CEO Carlos Ghosn, the carmaker took a backseat Aggressive proliferation Strategy, Delbos is trying to drive sales volume through what it describes as a “diverse, complex and expensive lineup”.

“We pay the price for this model today,” Delbos said. “Our growing size and structural costs are set for growth that has not happened.”

Renault will reduce costs across engineering, manufacturing, sales and administration, he said. The agency, which employs 160,000 people worldwide, said it would consult with unions on some of its plant restructuring in France.

Chairman Jean-Dominic Senard said in a statement that “the changes planned to ensure the sustainability and development of the organization in the long run are fundamental.”

Carmakers are in the middle of one Painful collapse worldwideThe sales have declined in the last two years since the record 2017
On Tuesday, French President Emmanuel Macron made an announcement $ 8.8 billion aid package For the country’s auto industry. Luca de Mayo, who was previously president Volkswagen (VLKAF) The brand seat will take place on July 1 as Renault’s new chief executive.

The decision to pull the Renault brand from China is part of the new alliance’s strategy, which will see direct members take the lead in specific geographies and others will follow. Nissan will lead the key markets in Asia, including North America, the Middle East and China and Japan. Renault will take first place in Europe and South America, while Mitsubishi has been assigned parts of Southeast Asia and Oceania.

Thursday, Nissan announced It is reducing production capacity by 20% and shutting down a plant in Spain as part of the overhaul.

– Charles Riley contributed to this report.

About the author: Dale Freeman

Typical organizer. Pop culture fanatic. Wannabe entrepreneur. Creator. Beer nerd.

Related Posts

Leave a Reply

Your email address will not be published. Required fields are marked *