5,000 jobs at risk at Renault
As the government met yesterday with key stakeholders in the French automotive sector to find solutions to revive post-Covid momentum, Renault hinted, through its cost-saving plan, that 5,000 jobs will be eliminated by 2024.
Working for several weeks on a large economic plan due to its delicate financial situation, further worsened by the Covid-19 crisis, Renault is likely planning to part ways with 5,000 positions within its factories in the medium term. While this announcement is yet to be officially confirmed this Friday, it seems that this staff reduction will occur through non-renewal of positions rather than layoffs.
This information aligns with the government’s decisions, which, after meeting with about fifteen key stakeholders in the French automotive sector on May 26, unveiled a comprehensive support plan for the market. Indeed, in addition to the 5 billion euros in guaranteed loans to the former Régie, a budget of 8 billion euros will be allocated to financially support the automotive market as a whole.
Already in trouble before the Covid-19 crisis with the announcement of the closure of various production sites, this has worsened the situation of the brand with the Diamond, which finds itself obliged to make difficult decisions to ensure its economic sustainability.
As the government has chosen to focus on electric and clean vehicles, aiming for France to become the largest producer of non-polluting vehicles in Europe, Renault’s strategy, as a major player in the sector with its Zoé, will be crucial in defining a long-term vision for the French car of tomorrow.
If this announcement darkens Renault’s future in F1, the recent partnership between Renault Sport F1 and DP World, the third-largest port operator globally, still reassures regarding the presence of the French brand on the F1 grid in 2021.
It remains to be seen whether the compatibility between the drastic savings plan and staying in F1 can occur without major upheavals.
