AutoBeta(AutoBeta.net)05/29 Report--

According to foreign media reports, French carmaker Renault will cut 15000 jobs worldwide, accounting for 10% of its total workforce, as part of Renault's plan to cut costs by 2 billion euros over the next three years. At the same time, Renault unveiled a recovery plan as part of a restructuring plan to boost profitability and cope with falling sales.

Against the backdrop of the declining car market, Renault's financial situation is not optimistic. According to the financial report, Renault Group realized operating income of 55.54 billion euros in 2019, down 3.3% from the same period last year. Net profit was 19 million euros, with a net profit loss of 141 million euros compared with last year, the first annual loss in 10 years. Affected by the epidemic, Renault's performance has been hit again. Renault's operating revenue fell 19.2% to 10.125 billion euros in the first quarter of this year, and global car sales fell 25.9% to 673000 vehicles.

Since losing money last year, Renault has launched a series of cost-cutting plans this year, including layoffs, factory closures and car cuts. It was previously reported that Renault was about to close, including Flins in Paris and Dieppe in France, as well as the Choisy-le-Roi parts plant in Paris and the Morbihan foundry in Morby Khan. At the same time, Renault is considering slashing production lines, with five models approaching their final life cycle, including the Megane hatchback, the SUV Correau, the Tallisman sedan and the Espace minivan, MPV Landscape, and cutting R & D and engineering costs.

Renault's series of efforts are intended to ease the company's current difficulties, but they have also raised concerns about Renault. In April, Renault Group's bond rating was downgraded to junk status by S & P, and French economy and Finance Minister Bruno Lemerre even said that Renault faced serious financial risks if Renault could not get assistance to deal with the impact of the epidemic. Renault could go bankrupt.

In order to alleviate the impact on the company's performance, the Renault-Nissan-Mitsubishi Alliance issued a number of strategic measures on the 27th. The three member companies plan to make full use of their leadership and geographical advantages to support the business development of their partners. to improve the competitiveness and profitability of the three companies and save the troubled alliance.

According to the strategic plan, Renault Group will focus on the development of European, Russian, South American and North African markets in the future, as well as commercial vehicle and diesel power system technology. For the Chinese market, Renault Group will focus on the development of electric vehicles and light commercial vehicles, in which the light commercial vehicle business will be carried out by Huachen Renault Golden Cup Automobile, and the electric vehicle business will be carried out by easy Jet New Energy and Jiangling New Energy. The strategy is designed to allay concerns about the collapse of the alliance after Mr Ghosn's arrest, thereby building confidence in the alliance of suppliers, dealers and consumers.

Industry insiders say the new strategy will help improve Renault's operational efficiency in China and the global market. Although Renault has withdrawn from the Chinese market, it also provides some room for Nissan to devote itself to the development of the Chinese market. Renault holds a 43.4% stake in Nissan, with the help of Nissan's development in the Chinese market and the global market. Renault can also make a profit from it, so as to achieve the goal of rebound in performance.

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