French car manufacturer Groupe Renault has drafted a plan to reduce fixed costs by more than 2 billion euros ($2.2 billion) in three years as part of efforts to restore the group's competitiveness and ensure its long-term development, which includes cutting 10,000 jobs worldwide on top of the 4,600 jobs that will be subject to undergoing a "workforce adjustment project" in France
MOSCOW (Pakistan Point News / Sputnik - 29th May, 2020) French car manufacturer Groupe Renault has drafted a plan to reduce fixed costs by more than 2 billion euros ($2.2 billion) in three years as part of efforts to restore the group's competitiveness and ensure its long-term development, which includes cutting 10,000 jobs worldwide on top of the 4,600 jobs that will be subject to undergoing a "workforce adjustment project" in France.
"This workforce adjustment project would be based on retraining measures, internal mobility and voluntary departures. It would be spread over three years and would concern nearly 4,600 posts in France, to which would be added the reduction of more than 10,000 other positions in the rest of the world," the company said in press release on Friday.
Renault also plans to reduce its international production capacity to 3.3 million vehicles by 2024, compared to 4 million vehicles in 2019, among other measures.
"[The plan envisages] suspension of planned capacity increase projects in Morocco and Romania, study of the adaptation of the Group's production capacities in Russia, study of the rationalization of gearbox manufacturing worldwide," the press release read.
The implementation of these rescue measures will cost around 1.2 billion euros, the statement added.
Groupe Renault is one of the largest carmakers in France and in the world and is part of the Renault-Nissan-Mitsubishi alliance.
The company owns the Romanian brand, Dacia, and the South Korea's Renault Samsung Motors. Russia's AvtoVAZ Group, which is a part of the Renault-Nissan-Mitsubishi alliance, operates a full-cycle car production under four brands - Lada, Renault, Nissan and Datsun.
