Renault Gets Union Backing to Cut 1,700 French Jobs for EV Shift

(Bloomberg) -- A majority of Renault SA unions signed on to a plan to eliminate 1,700 jobs in France as part of the automaker’s manufacturing overhaul and shift to electric vehicles.

In exchange for agreement to the reductions, the manufacturer will base nine new models and target production of more than 700,000 vehicles a year in the country, according to a statement Tuesday. The job cuts will come between 2022 and 2024, while 2,500 people will be hired during the period.

The CFE-CGC, CFDT and FO unions agreed to the plan, Renault said. In a separate statement, the hardline CGT rejected it.

Getting agreement for the cuts has been politically tricky for Chief Executive Officer Luca de Meo amid pressure from the government, which is the carmaker’s most powerful shareholder. Making EVs requires fewer workers than vehicles running on combustion engines. 

The cuts sealed Tuesday by Renault come on top of those announced last year to eliminate about 14,600 jobs worldwide -- including 4,600 or about 10% of its French workforce -- and a lowering of production capacity by almost a fifth.

Renault agreed not close sites covered by the latest accord including industrial, logistics, parts and accessories plants, nor will it close the technical engineering facilities in Lardy and Aubevoye, it said Tuesday. The carmaker is also planning on retraining some workers in skills required for EVs.

Key Highlights

• Renault’s EV hub in northern France will be assigned the new Megane, Renault 5 and Kangoo, as well as a future SUV and another car it didn’t elaborate on.
• Plants at Dieppe and Sandouville will produce the new Alpine and an electric Traffic van while Batilly will produce a replacement for the Master van and a vehicle from a partner.
• Cleons will make a 100 kilowatt electric motor, Le Mans a chassis

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