Renault’s CEO Carlos Ghosn warned that the automaker might disappear from its current form if it doesn’t find a plan to be competitive at home.
“Each company is tied to its home country. I do not know of any company that can be viable, that can prosper from a base that is not competitive. A company needs a natural base, Renault’s natural base is France,” said Ghosn.
Renault, which is struggling with the market decline and excess capacity in France, expects a 13% fall in the country’s auto market and 8% drop in Europe by the end of this year. Renault said that if the market doesn’t show any signs of improvement it will be forced to begin cutting jobs in France. Its Competitor PSA Peugeot Citroen already announced its plans to cut 10,000 jobs and close a plant near Paris.
Ghosn said he plans to ask labor unions for a new deal on conditions and pay to avoid mass layoffs. Present at the Paris auto show, Ghosn told reporters that he believes auto markets will take 3-5 yars to reach the pre-crisis level again.
“We are not certain to have touched bottom yet,” said Chief Operating Officer Carlos Tavares. “We are now stuck in a situation that could last.”