Renault’s Restructuring Plan Calls For 15,000 Layoffs Worldwide, 17.5% Lower Production Capacity

Yesterday Nissan revealed its restructuring plan and today it is Renault’s turn to do the same.

Renault Group’s main objective is to reduce fixed costs by more than €2 billion ($2.22 billion) over the next three years to restore its competitiveness and “ensure its long-term development within the framework of the Alliance.”

Achieving savings of this magnitude will be possible by reducing the workforce, the production output and the diversity of components within vehicles. More specifically, Renault plans to lay off just under 15,000 employees worldwide and reduce its production capacity to 3.3 million in 2024 from 4 million in 2019.

Renault plans a reconversion for the Dieppe plant after production of the Alpine A110 ends

The company said the workforce adjustment project would be based on retraining measures, internal mobility and voluntary departures. Spread over three years, it would concern nearly 4,600 posts in France and more than 10,000 other positions in the rest of the world. In France, the Renault Group will be organized around strategic business areas with a promising future: electric vehicles, LCVs, the circular economy and high value-added innovation.

At the heart of the Group’s recovery will be three major regional centers of excellence based in France. The Douai and Maubeuge plants will focus on EVs and LCVs, respectively, while the Flins and Guyancourt facilities will be reorganized. As for the Dieppe plant, home to the Alpine A110, Renault plans a reconversion after production of the sports car ends. Sadly, this likely means the mid-engined A110 will not have a successor. The carmaker will also launch a strategic review regarding the Fonderie de Bretagne plant.

The company also said it would suspend planned capacity increases in Romania and Morocco, as well as adapt its production capacities in Russia.

Plans to expand production capacity at the Dacia plants in Mioveni, Romania and Tangiers, Morocco have been suspended

On the product side of things, Renault plans to improve efficiency and reduce engineering costs by leveraging the assets of the Alliance. The company will reduce component diversity, increase standardization and pursue Leader – Follower programs within the Alliance.

It will also concentrate the development of strategic technologies with high added value in the engineering sites of Île-de-France (the region surrounding Paris). This involves the optimization of the use R&D centers abroad and subcontracting.

According to Renault, the estimated cost of implementing the transformation plan is around €1.2 billion ($1.33 billion). Renault is offering further details on its transformation plan during a live press conference this morning you can watch at this link.

The Flins plant near Paris could switch from building cars to recycling activities

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