CLOTHILDE delbos, Renault’s interim CEO, will announce details of its cost cutting plan on May 28, and Nissan, its alliance partner, will announce its own on the same day.
Renault is considering closing parts and assembly plants in France as part of a 2 billion euro (17.1 billion yuan) cost reduction plan, according to the latest French news media report.
Factories at risk include Renault’s assembly plant in flins, near Paris, which currently produces the Renault Zoe electric car and the Nissan Micra Mini hatchback. According to Les Echos, the 2600 worker factory may be converted to other uses after the life cycle of the cash Zoe ends in 2022.
In the past 2019, the Frings plant produced about 160000 vehicles, and Renault upgraded the base in 2018 to increase the production of the hot selling Zoe. Since the plant was put into operation in 1952, Frings has produced about 18 million vehicles, including key Renault models such as Dauphine, Twingo and Clio.
Last year, Renault decided to move the entire assembly of Clio to Turkey, resulting in the loss of most of the plant’s production. On top of that, Renault’s plant in Dieppe in northwest France, which employs 400 people, is one of the smallest in the Renault Nissan Alliance.
Two parts plants are also reported to be closed: the choise Le Roi plant near Paris, which currently employs about 250 employees, and a parts manufacturing plant in Morbihan, western France, employs about 400 people.
So far, Renault did not immediately respond to requests for comment from foreign media. However, CLOTHILDE delbos, the company’s interim CEO, will announce details of its cost cutting plan on May 28, and Nissan, its alliance partner, will announce its own on the same day.