Renault’s global production capacity will be revised from 4 million vehicles in 2019 to 3.3 million by 2024, the company said. Jean-Dominique Senard, president of the board of directors of Renault, said that “the expected changes are fundamental to ensure the sustainability of the company and its long-term development”. The group, which employs 180,000 workers worldwide, has announced the suspension of the planned capacity increase projects in Morocco and Romania and is considering an “adaptation” of its production capacities in Russia, while announcing the cessation of Renault-brand oil-powered automobiles in China.
Even if the plan does not seem to include the feared factory closings in France, the manufacturer is now in danger of ending up on a collision course with the government of Paris, the largest shareholder, which could blow up the 5 billion euro guaranteed loan from the state . Last Tuesday the French president, Emmanuel Macronmeanwhile, has announced an arsenal of incentives to support the car sector in crisis. For those who buy electric cars comes a incentive of 7,000 euros if it is a matter of private citizens, 5,000 euros for companies and local authorities. € 2,000 foreseen for the purchase of rechargeable hybrid cars. France also intends to increase the incentive to scrape the most polluting cars. The owners will receive an aid of 3,000 euros from the state and 5,000 euros if it is an electric vehicle. The offer will begin on June 1st for 200,000 vehicles.
Macron had commented with satisfaction on the group’s decision psa to produce the electric model 3008 a Sochaux, in France. To support that type of production, an investment fund of 600 million euros will be created, of which 400 million public and the rest put by the two main French groups. In addition, he explained, “we will invest to support innovation, research and development in the sector. Already in 2020 150 million will be mobilized to contribute to the effort to relaunch the supply chain “.