TATA H 5

TATA H 5

France warns Renault could disappear; Nissan plans job cuts

Visitors walk past the Renault stand during the Auto Shanghai 2017 show in Shanghai, China. REUTERS

Europe’s car industry was put on alert for more job losses on Friday as a French minister warned Renault could disappear if it didn’t get help soon and a Japanese news report said partner Nissan was considering 20,000 layoffs, with many in Europe.

Renault and Nissan have been in a carmaking alliance for the past two decades and are due to announce a strategy update next Wednesday.

The plan was originally billed as a reset of their relationship, which was rocked by the November 2018 arrest in Japan of the alliance’s architect and long-time boss Carlos Ghosn on charges of financial misconduct, which he denies.

However, the update has taken on greater significance since the coronavirus pandemic hammered demand for vehicles and threw production into disarray.

French finance minister Bruno Le Maire, who is considering a 5 billion euro ($5.5 billion) loan for Renault to help it through the crisis, warned on Friday the company’s future was at stake.

“Yes, Renault could disappear,” he told Europe 1 radio.

Le Maire said Renault’s French plant in Flins mustn’t close and the company should be able to keep as many jobs as possible in France, but also said it needed to adapt and be competitive.

Renault declined to comment on Le Maire’s remarks.

The Flins factory, northwest of Paris, is where Renault makes its electric Zoe models and the Micra car for Nissan. It employed around 2,640 people at the end of 2018, according to Renault’s website.

The company has 40 plants and 13 logistics sites in 16 countries.

A Nissan Altima car with a China Stage VI emission standard is seen at a dealership in Beijing, China. REUTERS

Kyodo, meanwhile, said Nissan might axe 20,000 jobs from its global workforce, mainly in Europe and developing countries.

Two people with knowledge of the matter told Reuters the number of cuts had not been finalised.

Nissan declined to comment.

The Japanese automaker said in July last year it would cut 12,500 employees, nearly 10 percent of its of 140,000-strong workforce. If it raises that figure to 20,000, it would broadly match the number of jobs it shed during the 2009 global financial crisis.

Sources familiar with the matter told Reuters earlier this month that Nissan’s management had become convinced it needed to be much smaller and would likely cut 1 million cars from its annual sales target, while seeing a bigger role for the United States and China in car sales.

Sources have also said it plans to scale back its European business to focus on sport-utility and commercial vehicles, including possibly closing a plant in Spain, which employs around 3,000 people.

Hit by over-capacity, stiff competition and flagging demand, Europe’s car industry has seen a steady stream of job losses, with Germany’s Volkswagen announcing in December up to 9,500 cuts at its Audi brand.

So far, most of the layoffs during the coronavirus crisis have been temporary, however, with companies taking advantage of government-backed furlough schemes. (REUTERS)

5091 Total Views 6 Views Today

Related post

F1 season to open in Austria after government backs Spielberg double act

Formula One’s truncated coronavirus-hit season will finally get underway with the Austrian Grand Prix on July 5, the Austrian government announced on Saturday. The Spielberg circuit has also been given the green light to stage a second race the following weekend. “The two Formula One races on July 5 and 12 at Spielberg will be […]

Read More

Nepal government sounds death knell on electric vehicles

The Nepal government sounded the death knell on electric vehicles after announcing a steep hike in excise and customs duties on electric vehicles during the new budget presented to Parliament on Thursday. This move is a complete contradiction to Prime Minister’s KP Oli’s declaration that 20 percent of vehicles in Nepal would be electric by […]

Read More

Renault to cut 15,000 jobs in 2 billion euro cost cutting plan

French auto giant Renault plans to cut around 15,000 jobs worldwide, including 4,600 in France, as part of a two billion euro cost-cutting plan over three years, sources said on Thursday. The plan, which is set to be announced publicly on Friday, was explained to unions by the company on Thursday evening, multiple sources with […]

Read More

Nissan sets out survival plan after first loss in 11 years

Nissan Motor Co unveiled a plan to become a smaller, more cost-efficient automaker on Thursday as it looks to recover from four years of tumbling profits that culminated in its first annual loss in 11 years. Under a new four-year plan, the Japanese carmaker will slash its production capacity and model range by about a […]

Read More

Volkswagen in final talks to seal biggest M&A deals in China EV sector

Volkswagen AG is in final talks to seal its largest investment deals with Chinese electric vehicle (EV) firms, two sources said, as the German automaker accelerates its push into the world’s largest market for environmentally friendlier cars. The firm is poised to buy 50 percent of Anhui Jianghuai Automobile Group Holding, the parent of EV […]

Read More

Shadow Top Brand Shadow