Renault reviewing production costs in France and bid decisions in the pipeline
French car maker Renault is considering the complete closure of factories because of the dire state of the European automobile market, the company's chief operating officer was quoted on Sunday.
“We will see. We are currently talking to the unions and explaining to them how big the gaps are in our competitiveness,” Carlos Tavares told German trade newspaper Automobilwoche.
“We have a competitiveness problem in western Europe and France.”
The European market's prolonged decline is even starting to make previously impervious car makers, such as Volkswagen, feel vulnerable. “We're bracing for more negative surprises in 2013, perhaps also in 2014,” Christian Klingler, VW's sales chief, said at the Paris auto show last week.
Tavares pointed out that Renault's cooperation with Nissan had given the company hard data on productivity levels at Nissan factories in Sunderland in Britain and Barcelona in Spain.
“These factories are really top,” the Renault CEO said, adding that discussions were under way on whether Nissan could make production capacity available to Renault.
“That is one possibility,” Tavares said.
A Renault spokeswoman declined to comment on the report, but Chief Executive Carlos Ghosn said on Friday that the French car maker could disappear “in its current form” if it is unable to be competitive in its home market.
However, Ghosn also said that Renault had no plans at this stage to cut jobs in France.
Suggested Stories
-
May 23rd 2013
Energy - Balancing the Bonanza: Interview with Mark Thoma
-
May 23rd 2013
Global economy to pick up in second half forecasts UN agency
-
May 23rd 2013
Europe’s three largest economies call for stricter rules on corporate tax avoidance
-
May 22nd 2013
US airline closes 4bn dollars deal with Brazil’s Embraer for 40 commuter aircraft
11 comments Feed
Note: Comments do not reflect MercoPress’ opinions. They are the personal view of our users. We wish to keep this as open and unregulated as possible. However, rude or foul language, discriminative comments (based on ethnicity, religion, gender, nationality, sexual orientation or the sort), spamming or any other offensive or inappropriate behaviour will not be tolerated. Please report any inadequate posts to the editor. Comments must be in English. Thank you.
Yes, it is called a 30 hour week and 6 weeks of holiday.
BK you can repeat your mantra over and over and nothing will change. Countries in Europe can change their government from left to right and back again and nothing will change. Even the socialist governments know the facts. They use your “austerity isn’t working” line to attack the incumbent government, but once in power they know the reality is that to increase spending would be to accelerate decline.
Look at France. The socialist gov’t hasn’t increased spending because they know they can’t. The only route left to them is to increase taxes to disincentivising levels.
The UK left have said the same, they would maintain conservative public spending cuts.
Renault are obviously softening up the unions before renegotiations. What they need to do is take them to South Korea to see why they are being so successful at exporting cars. Putting aside innovation and technology, it is hard work and less pay. Everyone would like to work fewer hours and earn more, it might win votes, but it isn’t realistic.
...
Meanwhile in Chile public spending increase 127% in 6 years.
We had to stop selling Renaults because although their designs were attractive to the public they couldn't make them reliable. One year we sold 27 Renaults of various models: we had 62 back for rectification, even though they all worked perfectly and had a 12 month MoT (if applicable) before they left us. Only four never came back to us. We could not make a profit on them and Renault certainly cannot.
The French think the EU owe them a living for being French. The communists in the unions have well and truly screwed France and they are only just waking up to it.
Renault and all the other manufacturers cannot close plants in France because of the punitive social costs. Basically, all the other plants around the world will close before those in France.
BSK “Austerity isn't working”
No, because there is no austerity. Government spending has to REDUCE for austerity to work. Unless you had not noticed government spending is accelerating. Wouldn't be union protectionism at work again would it, only this time it's government employees?
I've yet to find a reliable brand of car, having gone through numerous FIATs (Fix It Again Tomorrow), and Nissans. My latest disaster was a Renault Megane, where the cam belt went while it was still under warrantee (fortunately). It's been giving me assorted minor niggles ever since.
It doesn't matter how cost-effective your build process is if your end product is a large steaming pile of elephant droppings.
Wrong you idiot. deregulation is a code word for ”hell with workers, let them them becomes slaves, keep the government out whom are for it's people that are elected BY the people and for the people, so that corporations can do whatever they want (and if they are in trouble, give them a bailout). Deregulations is exactly what caused the so so called “credit crisis” pushed by corporations and banksters (who are in trouble), beg the goverment for more “help”, and pretend the have all the answers. Does that make sense to you? I guess that does, because like most of them..you're a braindead clown who keep listen to jerks who caused this. The so called market makers cannot regulate themself.
“Austerity isn't working”
Exactly, because it never worked in the past.
Chris(R), shows again how retarded he is. France already pushed austerity measures upon their people. Austerity = Cut services, but let the people pay more for the same services that are being cut (pay more for less). Where does all that “savings” go? Bank bailouts. Pay more attention if you want type here of what's going on, rather than typing comments out of your ass.
“These factories are really top,” - Good one Nissan UK !!!
A Dutchman living in the USA pontificating about austerity, is this hypocrisy?
Re-read my post. THERE IS NO AUSTERITY IN THE UK - PUBLIC SPENDING IS ACCELERATING!!
How can there possibly be austerity, the very definition means public spending is reduced.
Very quick with the insults as usual, wrong as usual.
At least you say they were good quality =) Fellow commenters, would you buy a used car from this man? =)
Commenting for this story is now closed.
If you have a Facebook account, become a fan and comment on our Facebook Page!