Business Six Renault models endangered

Six Renault models endangered

Renault may close four factories in France, including the company in Dieppe, where the production of the Alpine A110 sports car has been launched. According to Automotive News, due to the reduction in production without successors, six brand models are at risk: Megane, Koleos, Talisman, Scenic, Espace, as well as the aforementioned Alpine A110. Their continued existence is in jeopardy.

Renault is gearing up for a massive restructuring that will allow the company to cut costs and save more than two billion euros by 2022. According to the publication, we can talk about closing the plant in Dieppe – its staff has about 400 employees. The company also has to decide the fate of the parts factory on the outskirts of Paris, the site for the production of engines and transmissions in Lorient, the assembly plant in Yveline.

Reuters, in turn, notes that Renault, which is partially owned by the state, may receive a loan of five billion euros from the French government. This may put an end to the issue of a possible reduction in production volumes and the abandonment of a number of models.

As for the Russian Renault plant, located in Moscow, it resumed work on April 27 after an emergency stop of the conveyor due to the coronavirus pandemic. There, production of Duster, Kaptur, Renault Arkana and Nissan Terrano models has been established.

In the first four months of 2020, Renault sold almost 35.2 thousand new cars on the Russian market, which is 16 percent less than the same period last year. In April, brand sales fell 75 percent, to 3135 cars.

From the financial report of the Renault group of companies (which includes AvtoVAZ, among others) for the first quarter of 2020, it follows that revenue decreased by 19.2 percent, to 10.125 billion euros. 701 million of them brought to the French by the Russian AvtoVAZ.

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