Renault is most famous for its World’s Cheapest SUV Dacia. It is grinding much of the market on that basis. In India also, it faced success with Dacia’s Indian spec Duster. Alpine and some other masterpieces are very well expected from this French carmaker. Tie ups with Nissan is also yielding some not-so-good vibes. Carmakers like Opel and PSA recently announced the job cut in near future. Renault seems to be joining the league of those auto makers.
Sluggish market condition is proving harsh for not only car sales but also to other components of industry. Renault CEO of the famous French car marquee, Carlos Ghosn announced that the organization will cut down the job of 7,500 French employees by 2016. He also made clear that plants will continue to work but with significantly lesser manpower. Company is unable to attain breakeven point, this step will might curb down some of the difficulties in its way.
Mr. Ghosn quoted, “If an agreement is signed with unions, this staff redeployment would require neither Renault a plant closing nor any forced departures.” Thus, it can be derived that employees will not be fired but lay off will come in the form of resignations and retirements. It is all because of the ‘natural turnover’.
There is always a hope to every falling dust. Some tweaks to Dacia might be able to change the future of this carmaker.
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