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By Employment Crossing
Despite Profits, Automaker Cuts 5,000 Jobs
By Employment Crossing
Renault, the French automaker, will let go of 5,000 European jobs in order to reduce costs by 10%. Despite profits, the company forecasts a rocky downturn in automotive sales as vehicle purchases scaled down from 10% to five.
Carlos Ghosn, Renault chairman, said that the company, which controls Japan’s Nissan, now expects 2009 global sales of three million vehicles, down from 3.3 million.
In order to compete, Renault will also raise the prices of its vehicles to match a rise in raw material costs. The change is estimated to bring a savings of 350 million euros in 2009 and 500 million euros annually.
Renault employs 47,000 workers in Europe.
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