In a statement issued today, the company said ‘difficulties encountered by the Group, the major crisis facing the automotive industry, and the urgency of the ecological transition are all imperatives that are driving the company to accelerate its transformation.’
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In France, where 4,600 positions are set to go, the company said it will focus on electric vehicles, LCVs, the circular economy and high value-added innovation.
Today’s announcement follows Nissan’s decision to close plants in Barcelona and Indonesia.
Along with Mitsubishi, Nissan is part of an automotive alliance with Renault that this week announced a raft of reforms including the sharing of resources, including production, models, and technologies.
"In a context of uncertainty and complexity, this project is vital to guarantee a solid and sustainable performance,” said Clotilde Delbos, interim CEO of Renault. “By capitalising on our many assets such as the electric vehicle, by capitalising on the resources and technologies of Groupe Renault and the Alliance, and by reducing the complexity of development and production of our vehicles, we want to generate economies of scale to restore our overall profitability and ensure our development in France and internationally.”
Renault believes it can save approximately €650m by optimising production, €800m by improving efficiency and reducing engineering costs through the Alliance, and around €700m by increasing the efficiency of support functions.
"The planned changes are fundamental to ensure the sustainability of the company and its development over the long term,” said Jean-Dominique Senard, Chairman of the Board of Directors of Renault. “It is collectively and with the support of our Alliance partners that we will be able to achieve our objectives and make Groupe Renault a major player in the automotive industry in the years ahead.”
In a separate development, SMMT announced today that year-on-year UK car production was down 99.7 per cent in April 2020 to 197 units. The trade body reported that UK car production could fall below one million units in 2020, which would represent lower volumes than in 2009.
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