Renault to Cut Further Production If Market Worsens

Renault CEO Carlos Ghosn said on Thursday the company could further reduce its production in 2009 if the decline of the auto market continues.

The leader of the second carmaker of France made the remarks after the announcement of a 26 billion euros (32.81 billion U.S. dollars) stimulus plan by French President Nicolas Sarkozy earlier in the day, which includes supports for French auto industry such as a 1 billion euros (1.27 billion U.S. dollars) credit line for car financing.

These measures are very positive," Ghosn welcomed the plan. " We will not face any liabilities and will deploy commercial offensive to amplify these measures when the market is quite sluggish. He sees the credit problem remains the biggest problem for the industry.

Regarding the bonus of 1,000 euros granted by the government to purchase a new vehicle, Ghosn said it was in the right direction and Renault would participate in it.

Ghosn said the company had no short-term plan for further job cuts, but if the market continued to fall, the unemployment will continue.

Renault has already pledged 6,000 job cuts in Europe, and is to close many sites in December.

Source: CRIEnglish