Renault UK has confirmed that the company might reduce its workforce by 30 percent. In addition, the French automaker will reduce its dealer network by a third by the start of 2013, autoexpres reported.
The announcement comes just days after Renault CEO — Carlos Ghosn said he expects European auto sales to fall about 3% by volume this year as a result of the region’s ongoing debt and economic troubles.
“It’s going to be tough for everyone, not just for Renault,” Ghosn said in an interview on the France Inter radio station last week.
However, Speaking in an interview in Davos, Switzerland, Ghosn said a European market decline will be offset by sales in the rest of the world. He said his forecast is also valid for Nissan and Renault.
The manufacturer sold a record 2.72 million cars and light trucks in 2011 compared with 2.63 million a year earlier.
Renault is still in discussions with Dongfeng Motor Group Co. and Chinese authorities to build cars in China, and has “good hope” of signing an agreement this year and start assembling cars in the country starting in 2014 or 2015, Stoll said.