Ecobonus and scrapping, so Macron tries to save the auto industry
“This project is vital,” comments chief financial officer Clotilde Delbos in a statement. The company that suffers from global overproduction due to the crisis triggered by the coronavirus, last February had announced its first losses in 10 years now.The car manufacturer is also at the center of an internal debate, which involves the Ministry of Economy, because it has put the closure of four transalpine plants on the table and together requested public funding for survival.
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“The difficulties encountered by the group, the great crisis experienced by the automotive sector and the urgency of the ecological transition are the imperatives that induce the company to accelerate its transformation,” Renault says in a statement. The plan provides for “an improvement in efficiency and a reduction in plant costs” for around 800 million euros, “optimization of production” with savings for around 650 million with a review of the global production capacity of 4 million vehicles in 2019 to 3.3 million in 2024, a “greater efficiency of the support functions” for 700 million. The estimated cost for the implementation of the plan is € 1.2 billion, the group specifies.
“In a context of uncertainty and complexity, this project is vital for ensuring a solid and lasting performance”, underlines the interim CEO, Clotilde Delbos, mentioned in the press release. The group accused its first net loss in 10 years last year and from July will welcome the Italian Luca De Meo as general manager.