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
Drivers when they go on the roads are looking for a lot of convenience and performance from the car they are driving. Hence, when a car fails to meet their expectation they are quick to note it down and take it off from the list of cars that they would recommend others to drive.
In a poll conducted by car magazine Auto Express, British drivers were asked to vote the car makes and models based on the performance they provide on the road.
Two French car manufacturers gathered lamentable results on the poll, as they picked up the last positions in the poll of 35. All voters weren’t in favor of Peugeot and Renault, as both of them picked the last spots on the poll.
Peugeot was voted the worst by the voters as it got the last stop on the poll, while Renault finished second to last at 34th. Citroen, which is another French manufacturer, finished 28th on the poll!
The poll was topped by Skoda, with Lexus, Porsche, Jaguar and Honda coming 2nd, 3rd, 4th and 5th respectively. British drivers haven’t taken a liking for both Peugeot and Renault, which is a concern for both these car manufacturers.
When you speak of an esteemed French car manufacturing company such as Renault, you would expect for the company to invest all of its resources into the development and manufacturing of vehicles, so that it might be able to something that is actually useful for humanity, on the whole. However, when you consider some of Renault’s activities in recent, it certainly does not appear to be the case.
Those who love reading juicy and unbiased news, on the French automotive industry, have run out of luck it seem, owing to how Renault has finally decided to take “unbiased” completely out of the proposition. The company has purchased a 40 percent stake in the Challenges Group, which is a French publishing company, known for the news that it delivers on the automotive industry of cars. This means that people of France will read what Renault will feed on the matters of French cars. So much for unbiased journalism!
The surprising part of it all is that Renault is known, all over the world, as one of the leading players in the international automotive industry. However, when you consider that the company had to stoop so low in order to contend with the fact that it is being left out of the competition by companies that are ACTUALLY serious about taking the automotive industry of the world forward, you cannot help but consider the crisis that Renault must be which propelled it into making such a move.
Renault needs to realize that the company will be better served by making investments in cars rather than news agencies, owing to how it is the cars that will ultimately bring in profits and not public sentiments. If a car manufacturer is able to put forward the best products in the market, purchasing a news agency should be the least of its concerns.
Video Link: https://www.youtube.com/watch?v=Dj6cnEeFr8c
Everyone who is involved in the French automotive industry is aware of the surreal knot that is being tied between Renault and Nissan. When you involve Mitsubishi into the mix itself, considering how it is the third lover on the bed, the scenario appears to be a little too good for these companies. A manifestation of this fact lies in how the net profit of these three companies amounts to somewhere around 9.4 billion Euros, making the alliance the fourth strongest on the face of Mother Earth.
Regardless of how lucrative the alliance might have been for the companies in question, the fact remains that results are not, likely, to be same from the perspective of France, as a whole. When you get into the comparison of the companies, you realize that the net income per head generated by the employees of Renault is, almost, half of what is generated by the employees of Nissan. Consequently, the first order of business of the combined group would, obviously, be to stop some of the production lines in France. This will result into the loss of employment for a lot of people, owing to how the automotive production lines are responsible for the bread and butter of a large number of families in France.
The French government has got fifteen percent ownership share in Renault, meaning that it has got the veto power to stop such a catastrophe from happening. If such a scenario is about to happen, therefore, the commoners of France would expect their government to stand up for their rights and interests, rather than looking to uphold some obscure economic principle relating to international trade. The French government has got an influence on the alliance, which is the reason why it has to ensure that things work out in favor of France!
Video link: https://www.youtube.com/watch?v=JC-mkuqidOg
When you speak of an esteemed French car manufacturing company such as Renault, you would expect for the company to invest all of its resources into the development and manufacturing of vehicles, so that it might be able to produce something that is actually useful for humanity. However, some of Renault’s recent activities certainly do not appear to be towards this end.
Those who love reading juicy and unbiased news on the French automotive industry, have run out of luck it seems, owing to how Renault has finally decided to take “unbiased” completely out of the proposition.
The company has purchased a 40 percent stake in the Challenges Group, which is a French publishing company, known for news that it delivers on the automotive industry. What this means is that people of France will read what Renault will feed on the matter of French cars. So much for unbiased journalism!
The surprising part of it all is that Renault is known, all over the world as one of the leading players in the international automotive industry. However, when you consider that the company had to stoop so low to contend with being left behind by companies that are ACTUALLY serious about taking the automotive industry forward, you have to consider the crisis that Renault must be in for it to make such a move.
Renault needs to realize that the company will be better served by making investments in cars rather than news agencies, owing to how it is the cars that will ultimately bring in profits and not public sentiment. If a car manufacturer is able to put forward the best products in the market, purchasing a news agency should be the least of its concerns.
Nissan has recently been involved in talks with the French government for the purchase of stakes in Renault, as part of the merger prelude. For those who don’t already know, Renault and Nissan have been in alliance for quite some time now – since 1999 to be exact, with Mitsubishi joining in on the fun recently as well. As a part of the alliance, Renault holds 43.4 % of the shares in Nissan, whereas Nissan holds 15 % of the stake in Renault. Recently, the alliance proposed a plan to the French government according to which not only would Paris give up its controlling at Renault but the company will relinquish its control over Nissan as well.
The proposition appears to be preposterous, especially when you consider the Tokyo market rules, according to which Renault will lose its entire stake in Nissan, as the deal will see Nissan’s stake in Renault exceed the mark of 25 %. This should be seen as nothing short of a disgrace for a country like France, which has always been one of the market leaders in this industry.
On top of that, the dilution of stake could be a risky game for the Macron government, owing to how they are still facing backlash for letting the TGV train makers fall into foreign hands. However, such a merger will have far more serious consequences, owing to how it will not only affect the country’s technological centers but hit the industrial jobs and the revenues that are collected from tax as well. What this means is that not only will the French lose out on their jobs but will need to contribute more to the state, in the name of tax as well.
Regardless of how lucrative the deal offered by Nissan might be, the French government needs to learn from its mistakes in the past and keep the companies that the French created with their blood and sweat from falling into foreign hands. If not, then it is the commoners of France who will suffer…again!
Renault has, recently, decided to re-launch its Alpine brand after a period of 20 years. The CEO of Renault had inaugurated the production line for the new A110, back in December, in a small coastal town in the northwest region of France, called Dieppe. Dieppe is among the poorest communities in the Normandy region, and the venture is bound to aid the living standards of the people there. Everything would have been perfect, however, if the spokespersons for Renault hadn’t resorted to lies as means for boasting their brand…yet again!
Renault claimed that its factory in Dieppe is the only one that’s building cars with aluminum bodies and chassis in the whole of Europe. The spokesperson had, perhaps, assumed the UK to not be a part of Europe, when making such a bold remark, owing to how JLR—a company based in the UK—has already been in the business of manufacturing cars with aluminum bodies and chassis. Either Renault needs an elementary lesson in geography to learn that the UK is one of the most powerful forces in Europe, or they need to build a car that can actually match up to the standard of JLR’s F-150, so that they don’t have to make audacious claims of greatness. It’s true, sadly, that everyone lies, whether it’s a person or a mere legal entity!
Gone are the days when racing companies and racers alike prided themselves upon going all in for victory. Don’t believe me? Well, take a look at the season-ending Abu Dhabi Grand Prix and decide for yourself. Renault’s races—Nico Hulkenburg—decided that it was worth it to not go for a win and to pragmatically secure the sixth place. Regardless how big of a mockery it makes out of the spirit of sportsmanship, it’s the manner in which the “sportsman” went about his business that has caused the uproar.
Early in the race, Hulkenburg decided to go off circuit to take the lead on Force India’s Sergio Perez. Most spectators would expect such an indecent maneuver to result into a strict action, but the organizers—for some bizarre reason—decided to hand out a five second penalty, which caused Renault to finish in the sixth position.
However, it’s when you consider what the result meant that you realize the gravity of the atrocity that had been committed. The result was good enough for Renault to go ahead of Toro Rosso in the Constructor’s Championship and take the sixth place. As a result, Renault will have more competitiveness (and more money) next year. If the competitions, nowadays, allow for achieving results through clear underhanded tactics, then the organizers should, at least, communicate to all of the participants, so that the competition is fair and the sport isn’t reduced to a mockery!
The French automaker Renault seems as if it was drooling over the uplifting of bans on Iran.
It only took a little while for the carmaker to strike a deal with Iran worth $987 million! The deal basically states that the carmaker will make tens of thousands of cars annually under a joint venture with Iran. Trump is already trying to isolate the automobile industry of Iran. So, here is the problem: the deal is pretty good from Iran’s point of view, but as for Renault, there does not seem any real value to it.
As if that wasn’t a problem in itself, by making this deal, the automaker is unnecessarily damaging its alliances with the US. In fact, Donald Trump only recently signed sanctions against Iran. Moreover, he also took the French President Emmanuel Macron on board to impede the growing influence of Iran. Not only does Renault try hard to break the confidence of the US President in the French government to fight Iran’s influence, but it has also put other French industries in jeopardy. You would not want to break ties with the US just so a petty carmaker like Renault can indulge in making cars with Iran.
It is evident that Renault knows no meaning of common courtesy when it hired Marcin Budkowski as Executive Director.
Marcin had been an FIA technical chief for eight months before Renault decided to lure him in. This means that he has an insight to pretty much all the secrets of the different F1 teams. As bad as it was on his part, it should have been Renault that should’ve busted the move.
It is unethical that you hire a person who knows well about the components different companies are using on their cars. It simply makes the sport unfair and inclines it into the favor of the desperate Renault. According to Toto Wolff from Mercedes,
“it’s incorrect that a person of that seniority within the FIA should be allowed to be in another working environment within a three-month period”
The low-blow Renault has made has caused several major names in the F1 Strategy Group. These names include McLaren, Red Bull, and Ferrari etc. Marcin will definitely use his knowledge and expertise in order to give Renault a chance to lead. This itself tells the trust this French automobile company has over its own components, operations and capabilities.
Renault could have been better than that!