French Industry Minister Sais Renault’s Demands Are ‘Reasonable’ image

Industry Minister Arnaud Montebourg said that Renault’s concessions to be made at its French plants are ‘reasonable’.

“I prefer reasonable efforts, rather than bankruptcies and plant closures, ” said Arnaud Montebourg.

Renault plans to cut 7,500 jobs in France in the following three years without compulsory redundancies and it requested the labor union to accept concessions on working hours, flexibility and pay in return for guarantees to keep the French facilities open. The automaker said that if workers agreed with these concessions, it could manufacture 80,000 more vehicles in France for partners Daimler and Nissan.

The Minister said that the French automakers should begin reinvesting in the country, as rival PSA Peugeot Citroen also announced it will cut more than 10,000 jobs in France and close a plant near Paris. The French government responded better to Renault’s plan to cut 7,500 jobs in the country, compared with PSA Peugeot Citroen, which was sharply criticized by French President Francois Hollande and Montebourg.

“Renault has delocalized more among suppliers and has created more production sites outside France. This is why PSA has to adapt more vigorously,” said a former industry executive who spoke on condition of anonymity.

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