Renault may lose six models

Renault may lose six models

May 20, 2020 0 By autotimesnews

French media have reported that four Renault plants and several models are at risk of restructuring, which should help the company save 2 billion euros.

The restructuring, in which Renault plans to close four plants in France, will help reduce the company’s fixed costs by 2 billion euros, but five models risk leaving the market forever. It is said to be the Dieppe factory producing the Alpine A110 sports car, as well as the Choisy-le-Roi spare parts factory on the outskirts of Paris and the Fonderie de Bretagne engine and gearbox factory near Lorient.

Another company (Flins, in the city of Yvelines, outside of Paris) will not be closed directly, but, according to management, will not produce models outside the current life cycle. Currently, the factory produces Nissan Micra as part of the Renault-Nissan-Mitsubishi alliance, but this supermini has long been fighting for sales with new competitors, including the electric Renault Zoe.

In 2017, a major overhaul of the Dieppe factory was carried out, as a result of which investments of € 36 million were made in the same year. The company employs 150 people. It is worth noting that the future of the A110 is uncertain, since the demand for the model in the first quarter of 2020 decreased significantly, and in February only 61 copies were registered in Europe.

However, the closure of the factory is only the beginning. According to experts, five more models will not survive before their current life cycle: Megane hatchback, Koleos SUV and Talisman sedan can join the previously announced MPV Espace and Scenic.

However, Reuters reported that Renault received a loan of 5 billion euros under state guarantees to help it cope with falling demand and lower liquidity due to the coronavirus pandemic. It is not yet clear whether this loan will change the company’s restructuring plans.