French auto giant Renault decided to close car production at one of its factories in Europe, despite the resistance of the country’s authorities. Bloomberg writes about this citing the statement of the company’s management.
This is an enterprise in the city of Flaine-sur-Seine, 40 kilometers from Paris, where 20 different car models have been assembled for almost 70 years. Currently, it produces the Zoe and Nissan Micra electric cars. By 2024, the enterprise is going to be redesigned as a site for the processing and modernization of cars and batteries. The production of electric cars and automobiles from Flains-sur-Seine will gradually move to the Douai plant.
Local trade unions are against the initiative. In their opinion, Renault may well combine production in Flains-sur-Seine with other activities. In addition, unions have calculated that in five years, three quarters of the electric vehicles that Renault intends to sell will be produced in other countries. “Renault cannot destroy manufacturing facilities in France and at the same time enjoy government support,” the French Democratic Confederation of Labor (CFDT) said in a statement.
In May 2020, President Emmanuel Macron presented measures to revive the dying French car industry. He promised automakers, in exchange for preserving businesses in France, to provide them with financial support from the state in the amount of 5 billion euros during the coronavirus pandemic.
Renault’s repurposing of production in Flains-sur-Seine is part of an ambitious plan to rehabilitate the company. It involves the reduction of about 4.6 thousand employees in France. In total, Renault plans to cut about 14.6 thousand employees worldwide to optimize costs. The latter are planned to be cut by 2 billion euros.