Renault is slashing production targets as well as 15,000 jobs to stay on course with cutting costs by €2bn ($2.2bn). These extreme measures, the company said, were necessary after COVID-19 related shutdowns and suspensions severely hampered its operations.
The French company will reduce its global production capacity to 3.3mn units by 2024, 700,000 fewer than its present capacity, and will turn its focus to small vans and electric vehicles, according to media reports. Former chief executive Carlos Ghosn targeted 5mn auto sales by 2022, but was arrested on corruption charges before COVID-19 devolved into a full-blown pandemic.
The company’s sales declined by 3pc on an annual basis in 2019, and by 25pc in Q1 2020.