French carmaker Renault said Thursday it will cut production from April and reduce its workforce by 13 percent to about 2,220 employees in Slovenia.
The unit, Revoz, is Slovenia’s top exporter and produces Twingo, Clio and Wind models.
“Over the last months Revoz has registered a drop in orders caused by the strong crisis that has hit the European market,” Revoz said in a statement.
European sales by Boulogne-Billancourt, France-based Renault tumbled 24 percent to 86,402 cars, according to the ACEA.
However, the French carmaker still expects overall sales to rise this year despite a drop in the European market, thanks to emerging economies such as Brazil, Russia and India, sales director Jerome Stoll said.
Renault and other nonluxury carmakers in Europe are fighting a bitter price war amid chronic overcapacity and shrinking demand in their local markets, especially in the small-car segment.