FILE PHOTO: Steve Tomlin, common supervisor at Martins Renault & Dacia in Studying, reveals the brand new model of Renault’s small battery electrical Zoe mannequin automobile, a preferred promoting automobile at his automobile dealership, in Studying, Britain October 23, 2020. REUTERS/Nick Carey/File Picture
June 9, 2021
PARIS (Reuters) -French carmaker Renault mentioned on Wednesday it would mix three of its vegetation in northern France to kind an electrical automobile hub with decrease manufacturing prices, which goals to end up 400,000 automobiles a yr by 2025.
Renault mentioned creating the one plant, often called Renault ElectriCity, would result in the creation of 700 jobs unfold throughout the assorted websites, which at present make use of practically 5,000 folks, by 2025.
The corporate, which is trying to produce fewer and extra worthwhile vehicles underneath boss Luca de Meo, faces sturdy competitors within the electrical automobile market, an space wherein it had an early lead however the place larger rival Volkswagen is is catching up.
Its French plan to create a brand new authorized entity and mix the workforce from the three websites has backing from all the corporate’s unions, Renault mentioned, and can entail additional labour negotiations because it overhauls earlier work agreements.
Talks will embrace reviewing gaps between some older contracts for 35-hour weeks that had been paid at 39 hours and newer ones with out that standing, mentioned Luciano Biondo, the top of the brand new industrial hub.
Adjustments comparable to these “will contribute to reaching the required competitiveness to provide B section vehicles in France”, Biondo mentioned, referring to smaller passenger automobiles.
Of the three vegetation affected, Douai is a automobile meeting website, Maubeuge a business automobiles meeting plant and the Ruitz website, which manufactures gear containers, will probably be assigned a brand new electrical parts manufacturing position, Renault mentioned.
It can shrink the scale of among the factories and likewise goals to provide some its future electrical fashions, just like the Megane and subsequent technology R5, on one meeting line.
Loss-making Renault has been trying to slash prices, together with by redundancies, because it tries to carry its profitability underneath De Meo.
Electrical vehicles are nonetheless dearer to provide than conventional ones, including to the associated fee equation. Renault needed to nudge manufacturing prices to between 3% and 4% of the vehicles’ promoting worth, however was nonetheless removed from these ranges, Biondo mentioned.
(Reporting by Benoit Van Overstraeten and Gilles Guillaume; Writing by Sarah White; Enhancing by Sudip Kar Gupta and Nick Macfie)