Renault CEO warns more cost-cutting may be needed

Renault CEO warns more cost-cutting may be needed

Renault CEO Luca de Meo has warned that more cost-cutting measures may have to be implemented in order to turn the company around. This is on top of the 2 billion euros (RM9.86 billion) cost cuts it had already set in motion, which involved laying off 15,000 employees and production shrinkage.

“The aim is to get back on the right track and to resolve our most pressing problems as quickly as possible: treasury and costs. This means we will perhaps need to go further than planned with our cost-cutting efforts,” de Meo said in an internal memo. However, he did not reveal any figures.

According to Automotive News, a Renault spokesman said de Meo is currently working on a plan to transform the company by focusing more on profitability instead of sheer sales volume. The automaker admitted in May that its global ambitions had been somewhat unrealistic, and the 7.29 billion euro (RM36.3 billion) loss in 1H 2020 was a “disturbing wake up call.”

“We are currently touching the bottom of a negative curve that started several years ago, and probably even earlier. We are in a complex, difficult situation. We all are. But… we were already, I would say, feverish. So for sure it is even harder for us,” de Meo said regarding the company’s 1H 2020 result.

To turn things around, de Meo told Renault employees: “We will need to take decisions that are sometimes difficult, but are necessary and positive for the company. I would describe it as a revolution. This revolution, which must be pushed forward by all the men and women of the company, I’m calling it a ‘Renaulution’.”

Looking to sell your car? Sell it with Carro.

10% discount when you renew your car insurance

Compare prices between different insurer providers and use the promo code 'PAULTAN10' when you make your payment to save the most on your car insurance renewal compared to other competing services.

Car Insurance

Matthew H Tong

An ardent believer that fun cars need not be fast and fast cars may not always be fun. Matt advocates the purity and simplicity of manually swapping cogs while coping in silence of its impending doom. Matt's not hot. Never hot.

 

Comments

  • Nicholas Liew on Sep 10, 2020 at 11:22 pm

    a company CEO always says the same thing when come to cost cutting.

    why don’t the choose themselves to be cut first?

    who do the work? working level.
    1 CEO salary can cover how many working level; how many family… A** H***

    Like or Dislike: Thumb up 2 Thumb down 1
  • Chavez on Sep 11, 2020 at 12:42 am

    They can start by cutting out their useless ETCM salesmen that does nothing for their company except bad mouthing others.

    Like or Dislike: Thumb up 5 Thumb down 1
    • Dato Dr Hj Yaakop Ismail on Sep 11, 2020 at 7:54 am

      That sounds like the DRB salesman in PRoton that do nothing. You enter the showroom and walk for half an hour also, nobody layan you and they just sit around playing whatsapp.

      No wonder sales are low

      Like or Dislike: Thumb up 1 Thumb down 4
    • Ghani on Sep 11, 2020 at 10:02 am

      That Nissan Almera 1.0Turbo baru memang top.

      Like or Dislike: Thumb up 4 Thumb down 0
 

Add a comment

required

required