Renault to reduce workforce at Van Factory amid European market slowdown
Autonews | Previous to this move Renault also declined to continue 700 temporary contracts at its Moselle van plant in January during the launch of a new model.
The Renault Group plans to eliminate 300 jobs from its Sandouville van factory premises in northern France because European commercial vehicle markets have decreased. The company made this announcement because the market demand has slowed down because of growing regional economic insecurity.
As Renault's leading European commercial vehicle seller under its Renault brand the company derives 14% of its total sales from necessary commercial vehicles for delivery businesses and tradespeople. Through its Normandy facility at Sandouville the company maintains employment of 1,700 full-time staff along with 600 temporary workers.
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The approaching terminations of 300 temporary contracts at Renault will not be extended by the company. Previous to this move Renault also declined to continue 700 temporary contracts at its Moselle van plant in January during the launch of a new model.
The chief executive of Renault Jean-Dominique Senard told BFM Business radio that the initial part of this year has proven hard for commercial vehicle activities. The overall economic situation stands as the main factor behind this decision according to Renault Chairman Jean-Dominique Senard.
Renault predicts a 14.9% decrease in European light commercial vehicle market sales in January along with a 9.2% decrease from the previous year during February. These market statistics demonstrate the intensifying economic stress on the commercial vehicle business sector.
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Production dynamics at Renault's van centers continue to face major challenges because European automotive manufacturers must adapt to declining market performance and variable demand levels. The goal of workforce reduction stands to match production with present-day sales patterns in order to guarantee long-term organizational viability.