Lots of movement in the Renault-Nissan-Mitsubishi Alliance lately, what with the reveal of a new business strategy and Nissan both posting severe losses and releasing a teaser of 12 forthcoming models.
Now it’s Renault’s turn to unveil a transformation plan, as it looks to navigate its way out of a perfect storm of a coronavirus pandemic and a steepening global recession. The French carmaker is hoping that this €1.2 billion (RM6.3 billion) plan will help it save more than €2 billion (RM9.7 billion) in fixed costs over the next three years, in order to make it a more competitive player in the industry.
The austerity measures aren’t pretty – during this same period, the company is looking to cut nearly 4,600 jobs in France alone, and over 10,000 in the rest of the world. This “workforce adjustment project” would involve retraining measures, internal mobility and voluntary departures, with a promise of dialogue with social partners and local authorities to carry this out.
Renault says it wants to strengthen cash flow while keeping the customer at the centre of its priorities, through more efficient operations and strict resource management. In France, this means it is focusing on “promising” aspects of its business for long-term development, namely electric vehicles, light commercial vehicles (LCV), the circular economy and high value-added innovation.
The company also estimates it will save €800 million (RM3.9 billion) though cheaper and more efficient product engineering alone, with a more streamlined development process that reduces component diversity and uses the leader-follower concept already outlined in the wider alliance strategy. Resources will also be optimised by concentrating on strategic technologies with high added value, using overseas research and development centres more efficiently and making greater use of subcontracting and digital validation.
A further €650 million (RM3.1 billion) will be saved in production, through the upgrading of its plants and increased digitalisation. Renault also plans to slash global production capacity from four million vehicles last year to 3.3 million by 2024, with the aforementioned job cuts and the suspension of planned capacity increases at the Moroccan and Romanian plants pinching further pennies. It will also study the adaptation of production capacity at its Russian facilities and the rationalisation of gearbox production worldwide.
Rumours in recent months suggested that the Alpine sports car brand would be getting the axe, and while the new plan makes no mention of it, its future remains unclear – especially since Renault says it is open to converting the Dieppe plant, which now makes the A110, once production of that car ends.
Elsewhere in France, the Douai and Maubeuge plants are being considered for the creation of a centre of excellence (no, not the Proton kind) for EVs and LCVs, while the Flins factory will receive a circular economy ecosystem, including the transfer of activities from the Choisy-le-Roi site. The Fonderie de Bretagne plant will also be subjected to a strategic review.
Finally, increased digital marketing and general cost rationalisation, including support functions, will put €700 million (RM3.4 billion) back into Renault’s coffers. The company will also refocus its core business by scaling down its Renault Retail Group (RRG) integrated distribution network in Europe and by ceasing the sale of combustion engine-powered passenger cars in China – a move it announced back in April.
Looking to sell your car? Sell it with Carro.
Creation of a centre of excellence (no, not the Proton kind). Apa salahan centre of excellence Proton …. you’d gonna get wrath of Ghosn..
Not surprised, the “normal” for most establishments have changed post-pandemic.
Safer to get gomen job.. duduk rumah, gaji jalan.
wrong strategy. Manpower is productivity.
cut salary is better, cut to 50% basic salary, 30% convert to Work From Home Allowance, 20% and more subjected to company performance.
Top Management. Finance and HR only know how to cut job save thier own ass. since company dont have real owner, heartless. If market is bad, it only means it is shifting. Reduce the focus on premium cars, focus on value added cars.
e.g
1. Cars with dual purpose.
2. Logistic purpose.
3. Home office purpose.
4. Campervan structure.
redesign the cars. dont just put sofa. It have to be upgrade to serve more purpose, just like those concept cars. It should be very busy right now to chase, to change, not simply removing manpower.
Meanwhile VW invested 2billions Euro @ China.
RM 9.7billion! While Renault trying to cut RM9.7bil..
R.I.P Renault for having lousy management.
Agreed. If proton more humble and join mighty VW
They would have to lose millions in support of Dieselgate scandals and any scant development work could easily be taken back just like SEAT. Geely OTOH continues to invest into Proton, so that is indicative of how important Proton are to them.
“scant development work could easily be taken back just like SEAT.”
You’re talking of what? You’re aware that SEAT is using VW platforms and VW engines? And that SEAT produced losses only for the first ten years?
Salary cuts are nearly impossible in France. This would cause a general strike there.
Salary and jobs cuts are impossible in p1 too
If they can perform, why cut?
What perfect opportunity for them to do some spring cleaning within their organization as most companies have a lot of redundant posts.
Remove the expensive deadlogs. Bring in young
Kudos to P1 Dr. Li got all factory hands to wfh.
Why bother. Just close down Nissan and you will save Rm 27billion in just a year. Plus you wont suffer being stabbed at the back by your partner.
Retrenched locals can take over foreigner jobs
Proton has no money to pay their workers. Renault got money still
Geely got no sales in China and in dire straits. They boring want to pay people who don’t contribute at all
Kesian Proton workers. Raya also cannot celebrate
Geely isn’t cutting salary of anyone, they aren’t even laying off people, that shows how strong Geely are financially. No more fake stories Kunta.
Renault is not so bloated. Our Putrajaya is bloated. 1.6 million Government servants to cater for 30 million rakyat
In Australia, 250,000 Government Servants to cater for the same 30 million rakyat
1.6 million VS 250,000 – what a wastage and goyang kaki in opis
Makcik Kiah suffer,but Government Servants hepi
Australia has 250,000 Gomen servants, got uncontrollable bushfires because too little Gomen servants cannot respond in time.
Malaysia has 1.6 million Gomen Servants, no uncontrollable fires because we have sufficient Gomen servants to respond quickly.
Give me Malaysian quick service anytime mate.
“The Fonderie de Bretagne plant will also be subjected to a strategic review.”
“Strategic review” sounds much better than “will be closed and all workers will be fired”.
Australia has population of 24,8 million only.
Australia has 242.430 FEDERAL public servants. The Australian Public Service does not include the civil services of the State and Territory governments!
Australia has 250,000 Gomen servants, got uncontrollable bushfires because too little Gomen servants cannot respond in time.
Malaysia has 1.6 million Gomen servants, no uncontrollable fires because we have sufficient Gomen servants to respond quickly.
Give me Malaysian quick service anytime mate.
Syukur x 10000. Gaji jalan for civil servants regardless of economy situation. Never retrench. Never potong gaji. In Malaysia civil services there are so much redundancy, and over-staffing. Take JPJ service counter. There was a staff I saw, with his job involved 2 specific task:
Stappling loose A4 application doc, and rubber stamping the doc.
I wonder what name was that post?
It is called Customer Service. A very underappreciated but nevertheless important role.
wow…within 4 years save RM9.7 billion?
that means the fellas at renault each take home monthly pay around RM13,472.22…15000 all high rank fellas?