A French Media Daily has reported that French automobile giant Renault has earmarked three of its manufacturing and assembling factories for an early closure in France. The move has come as a result of the recent COVID-19 pandemic, as companies reel from lowered consumer interest toward automobiles.
Renault as a company has plenty of fixed costs to cover and the company might not be able to continue on this trend going into the future. According to reports from the newspaper, it is the Alpine A110 producing factory on the outskirts of Paris that will be the first to shut down.
Similarly, Renault will also shut down another facility located at Flins.
Recently, thousands protested on the streets of France against the job cuts on the cards by Renault.
“It’s an earthquake that is taking place. We want to keep our company here,” Jerome Delvaux, a union member, said.
“This demonstration today is very important, even if it is a first step, to show the government and Renault that workers and residents of this area are committed to this company and that we have support,” Delvaux added.
“We need these jobs, otherwise it’s a whole territory that will die,” he said.
The company is looking to target savings, but these savings have certain repercussions that it isn’t accounting for.
YouTube Link: https://www.youtube.com/watch?v=xNIOehncMj4
Car sales in the French market have come to a screeching halt as the country reels from the impact of the Coronavirus lockdown. March saw a steep contraction of 72 percent, but the downfall for April has been even more severe. All businesses deemed non-essential, including auto dealers, have been closed since March 17th.
Only 20,000 units were sold during the month of April, out of which 17,000 were sold by the two biggest automaker models in France, PSA and Renault.
“There were some deliveries, some car registrations, especially by Renault and PSA, for medical staff, government workers and individuals who had ordered and already paid for their cars,” Francois Roudier, spokesman for the CCFA, told AFP.
Looking ahead, “it will be the recovery plan that determines the state of the market over the year,” Roudier said. “There are a lot of unknowns.”
The unknown factors in the market include speculations over when the lockdown will be lifted and by when we can expect a full fledged return back to normalcy. Until then, consumers and buyers would have to live and bear with the reduced sales and market growth in the automotive sector.
YouTube Link: https://www.youtube.com/watch?v=yZQUEOrS3bA
Corona is at play and the world seems to be suffering at its hands. Almost all financial, sporting, business and other activities have come to a standstill because of the impacts of COVID-19. While the virus has struck hard all over the world, Europe seems to be hit the most by it. France, Spain, England, Italy and Netherlands are all reeling from it.
The repercussions of COVID-19 include a lockdown across all countries of Europe. What this has meant is that there is little to no financial and business activities happening around.
The impact of the virus was also felt by the French car registration agencies. French Car Manufacturers PSA reported that their car registrations fell by a massive 73.43 percent in March. This is a record fall and is a severe shock to the embittered manufacturers.
PSA is responsible for making cars for the Peugeot and Citroen brands. Additionally Renault also reported a 71.6 percent drop in their registered vehicles. This total drop will harm the economy as consumers have literally altered their spending patterns.
Whether the world ever comes out of the COVID-19 pandemic is yet to be seen, but what we do know is that the French Car industry is suffering damage beyond repair.
YouTube Link: https://www.youtube.com/watch?v=NUBL2IlORFU