The Strategist

Renault is pondering closing several plants in France

05/21/2020 - 03:43

Renault is considering closing three small plants in France to cut costs, Les Echos writes citing sources. This decision may be announced in the coming days.

Renault may close a small enterprise with 260 employees in Choisy-le-Roi (Val-de-Marne), a foundry in Brittany with 385 employees. After them, the car factory in Dieppe, where 385 people also work, may be closed.

The plant in the Yvelines department, which produces the Zoe electric car and the Nissan Micra compact, will abandon the production of cars in a few years. Now 2,600 people work there, in 2019 the company produced 160,000 cars.

Recently, the government promised Renault €5 billion of state aid with the only condition that the company will not pay dividends.

The company explains that due to the financial difficulties of several previous quarters and against the backdrop of a pandemic that has further worsened the situation, Renault needs to reduce costs to restore vitality.

On May 19, the carmaker announced a reduction of about 400 out of 3,200 employees at a plant in Slovenia.