The company announced Friday that it will cut costs by more than 2 billion euros ($ 2.2 billion) over the next 3 years. He also plans to reduce the number of cars he makes every year from 4 million to 3.3 million by 2024, and will stop selling Renault-branded vehicles in China.
Renault said changes were needed because of the scale of the economic downturn from the pandemic, as well as stricter emissions standards. The company, which employs 180,000 people worldwide, said it would consult with trade unions about restructuring some of its factories in France.
“The planned changes are very important to ensure the company’s sustainability and long-term development,” chairman Jean-Dominique Senard said in a statement.
Renault shares fell nearly 50% for this year.
The decision to remove the Renault brand from China is part of a new alliance strategy, which will make each member take the lead in a particular geography while others follow. Nissan will lead in North America, the Middle East, and major markets in Asia including China and Japan. Renault will take first place in Europe and South America, while Mitsubishi has been assigned parts of Southeast Asia and Oceania.
– Charles Riley contributed to this report.