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Associated Press

French automaker Renault announces 4,000 job cuts

The Associated Press09.09.2008
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French automaker Renault SA announced 4,000 job cuts Tuesday, prompting protests from unions and an appeal to President Nicolas Sarkozy to intervene.

Renault, which had predicted lower sales volumes in July, submitted a document to union leaders saying the company is having difficulty meeting its targets for operating margins this year.

The car maker called the cutbacks necessary to meet productivity targets to keep the company competitive in a worsening economic environment and to avoid falling victim to consolidation.

Renault will also freeze hiring, and foresees cutting most of the 4,000 jobs through voluntary departures and attrition. The cuts represent about 3 percent of the company's nearly 130,000 employees.

The CGT union appealed to Sarkozy to intervene because the state owns 15.01 percent of Renault.

In July, Renault reported a 37 percent increase in six-month net profit but said it is falling behind sales targets.

Renault now expects to sell more than 3 million vehicles under its Renault, Dacia and Renault Samsung brands this year compared with the 3.3 million goal first expected as part of its four-year turnaround plan launched in 2006.

Copyright 2008 The Industry Standard. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed. AP contributed to this report.

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