Poor sales prompt 6000 redundancies
10 September 2008

Renault is to shed 6000 jobs, the bulk of them in France, despite a recent rise in the firm's profits.

The French firm, 15 per cent of which is owned by the country's government, announced in July that its half-year profits were up by 37 per cent. But that figure was still shy of Renault's sales targets, and it has now revised its goal for 2008 from 3.3m units to 3m.

The job cuts will be split between France (4900 redundancies) and other sites in western Europe. Renault is calling the process a 'voluntary departure plan' and it states that 3000 of the losses will involve staff not directly linked to production. But 1000 of the cuts will take place at the Sandouville plant that builds the recently launched Laguna.

The new Laguna has not been well received and has struggled to match the sales of the previous model, said industry analyst Jay Nagley, managing director of Spyder. At its peak in 2002, the Laguna sold 30,000 cars a year. By 2006/2007, at the the tail-end of its run, it was selling 7500 cars annually. So far this year, Renault has sold only 4,700 of the new model.

French unions have already called strike action in reaction to the news of job cuts, and demanded that French president Nicolas Sarkozy should intervene in the matter.

Add your comment

Log in or register to post comments

Find an Autocar car review

Driven this week

  • Citroën C3 Aircross
    First Drive
    17 October 2017
    It's got funky looks and a charming interior, but it's another small SUV, and another dynamic miss. Numb steering is just one thing keeping it from class best
  • Skoda-Karoq 2.0 TDI 4x4
    First Drive
    16 October 2017
    Diesel version of Skoda’s junior SUV is unobtrusive and undemanding, but we’d still go for the silkier petrol version of the Karoq
  • Audi Q7 e-tron
    First Drive
    16 October 2017
    Expensive and flawed but this understated diesel-electric Audi Q7 has a lot to offer
  • Citroën C3
    First Drive
    16 October 2017
    Is the third gen Citroën C3 ‘fresh and different’ enough to take on its supermini rivals? We spend six months with one to find out
  • BMW X3
    First Drive
    15 October 2017
    A satisfying rework of the X3 that usefully improves its handling, cabin finish, space and connectivity to make this BMW a class front-runner again