Reno, the world's leading automobile company, has announced the elimination of 15,000 jobs worldwide. The company plans to eliminate two billion euros in the next three years. Earlier, Japan's leading automobile company Nissan decided to close its Barcelona plant and lay off 3000 people due to losses. Significantly, Reno and Nissan are partners.
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On Friday, Reno said that 4,600 jobs in France and more than 10,000 people in other countries will be laid off. The global production capacity of the group will be revised from 40 lakh vehicles to 33 lakh vehicles per year by 2024. According to a statement issued by the company, the automobile industry is going through a bad crisis and the company is taking these steps in view of the changes in environmental protection.
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Jean Dominique Senard, chairman of Reno's Board of Directors, said that the changes being made are basic. Its purpose is to keep the company in the market and ensure its long term growth. The Reno Group has 1,80,000 employees worldwide. The company has also deferred plans to increase the capacity of the plants in Morocco and Romania. The French government has a 15 percent stake in Reno and is in talks for a loan guarantee of five billion euros. Finance Minister Bruno La Myre said earlier this week that the group faces a risk of remaining in the market. Reno's other subsidiaries, Nissan and Mitsubishi, are also struggling with the epidemic. In 2018, the company struggled to recover from the developments following the arrest of former CEO Carlos Ghosn. Ghosan has been declared an international fugitive after fleeing Japan during his bail. Nissan says that it is reducing its global production by 20 percent. The company has said that it is trying to return to profit and it will close a plant in Barcelona. 3,000 people work in this plant.
