Renault Halts Factory Expansions in Morocco and Romania Amid Economic Pressures

In addition to suspending its factory expansion projects in Morocco and Romania, Renault wants to reduce its production capacities in Russia, its mechanical activities in South Korea and the manufacture of gearboxes in Turkey.

The group unveiled its project on Friday. It will involve among other things the reduction of the workforce "without outright dismissal" through voluntary departures, retirements not replaced and internal mobility or retraining measures, reports the AFP.

On Thursday, the unions were given the presentation of the savings plan, during a meeting of the Central Social and Economic Committee (CCSE) of the group. This plan provides for the reduction of global production capacities, which will drop from 4 million vehicles to around 3.3 million, on a two-shift basis; which corresponds to a higher actual production in the event of a third shift.

In February, the French automaker had published its first annual losses in ten years, and at the same time announced a reduction in its fixed costs of two billion euros per year.