By | Rachel Brooks
Staff | Telegraph Local
Above, remote official Group Renault press conference.
Renault cuts 15,000 jobs in a major restructuring. This was reported by The BBC on May 29. While there are many intensive rumors reported, Renault states that the plan is essential for the company. At least 4,600 jobs will go in France. BBC also states that Renault is cutting down costs by reducing numbers of subcontractors in some areas such as engineering. In addition to cutting costs, Renault will also freeze the expansion plans it had for Romania and Morocco.
CNBC quoted Renault as saying that they had “thought too big” while they proceeded to slash the 15,000 jobs. CNBC was quoting Chief Executive Clotilde Delbos.
“We thought too big in terms of sales,” said Delbos, as quoted by CNBC.
“The mindset has completely changed. The previous line was volumes and sales and being the first on the podium. We’re not looking to be on top of the world, what we want is a sustainable and profitable company,” also said Delbos, as quoted by CNBC.
Bloomberg reported that the actual number of jobs to see the axe is more like 14,600.
The Economic Times reported that the cuts to jobs and costs are part of a scheme to reduce 2billion euros worth of expenses within three years time.
The Economic Times quoted an official statement by the company which details the automotive industry crisis and the strain on Renault manufacturing.
“The 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,” stated the Renault company, as quoted by The Economic Times (India).
ESPN likewise reported that Renault wil stay in Formula 1. This is a major backstep for the automotive manufacturer that planned to completely re-envision itself.
ESPN likewise spoke with Delbos over a teleconference interview.
“We confirm that we intend to stay in Formula One,” she stated in a conference call with ESPN on Friday.
“The new regulations, new cap in term of investments, because we had less investment than some of our competitors who are spending a lot of money, so F1, we are here, and we stay in Formula One,”likewise said Delbos, as further quoted by ESPN.
ESPN also reported that Renault’s F1 team took advantage of the UK’s furlough scheme during the coronavirus pandemic’s major peak time.
Reuters UK also reported that Renault expects to restructure its current factories to accommodate the grand shift during the coronavirus era. However, from the Reuters’ account, the influence of Carlos Ghosn appears to have had a stronger impact on the current situation. Carlos Ghosn is the disgraced fugitive former CEO of the Renault company. Nikkei Asian Review reports that Renault seeks compensation from Ghosn following his alleged crimes. Ghosn made a dramatic escape into Japan late last year.
Renault was in trouble even before COVID-19 and posted its first loss in 2019. The company will likely struggle to make a comeback in the post-COVID-19 market world with so many other odds stacked against the brand.