Renault Financially Struggling Amid COVID-19

Fifteen thousand civilians throughout the European Union & United Kingdom are losing their jobs with Renault. This decision follows after the French Car Manufacturer announced a €2 Billion Cost-Cutting Strategy, with their sales dwindling substantially during the coronavirus pandemic.

The Interim Renault CEO informed reporters that this plan is essential for their operations to remain active for the prolonged future. Those terminated could be rehired under the condition that profits return to regular valuations after the pandemic. It should be noted that 33% of the jobs being cut apply towards France, with the remaining lost careers involving the United Kingdom. Six Manufacturing Plants operated by Renault could enter closure status as well, with confirmation not detailed by their temporary CEO.

There are rumours that if these United Kingdom Manufacturing Plants are closed, then Nissan will take overproduction. Nissan & Renault have maintained an extensive partnership for 10+ years, with the Japanese Manufacturer having reserve funds to assist them during the virus. Renault’s participation in Formula One & expansive growth over the last decade has depleted their reserve funds. When questioned on if these rumoured reports are accurate, Renaults temporary CEO denied these claims.

It should be mentioned that with their extensive Reserve Funds, Nissan is still facing financial burdens because of the COVID-19 pandemic. This was confirmed when their Barcelona Manufacturing Plant, with a small percentage of their Sunderland Plant furloughing employees until the epidemic is over. Nissan is expected to request a Government Bailout similar to Renault in France. It’s rumoured that Renault will receive an €8 Billion Loan. Considering that the French Government owns 15% of the auto manufacturer, this would make logical sense.

Additional Cost-Saving Measures

The termination of these employees extends beyond the manufacturing plant. Subcontracts employed with Renault have lost their positions, with Component Retails being told that a large percentage of their products won’t be required. Expansion Plans with Renault were slated to continue throughout 2020 until 2025, with it now being cancelled for the foreseeable future. Renault suspects they’ll Manufacturer a maximum of 3.3 Million Vehicles Per Year after COVID-19. This is 800k less than their previous valuations. Don’t expect the company to enter closure status anytime soon.