Renault is preparing to considerably reduce its range of vehicles, recalling known but sick models like the Espace minivans in the context of plans to reduce imminent costs, according to four sources in the sector and close to the French car manufacturer.
Shaken by the fall of its CEO once star Carlos Ghosn and the setbacks in its main markets, it will explain by the end of the month how it intends to reduce its costs by 2 billion € (2.16 billion $) next three years.
This will coincide with the strategic update from the Japanese partner of Renault Nissan, which will be defined on May 28 and is expected to cover a decline in Europe and other places to focus on the United States, China. and Japan.
"The project is not yet completely frozen, but the Espace, the (compact minivan) and the large Talisman sedan should already be considered scrapped from the future product program, that’s practically a fact that these models are going to stop, "explained one of them. . The sources told Reuters.
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"In short, fewer minivans and sedans and a focus on crossovers and SUVs," added the source.
The company had already started a revision of its ranges in 2009, but still has between 45 and 50 models in its catalog, under its own brand, as well as Dacia, RSM, Lada and Alpine.
Renault, which last year recorded its first net loss in 10 years and was hit hard like its peers by the coronavirus crisis, declined to comment.
The automaker, 15% owned by the French state, is negotiating with the government a help plan of 4 to 5 billion euros to resist the impact of the drop in sales and of production due to the pandemic. .
IN THE FOOTSTEPS OF PSA
PSA, French competitor of Renault, followed a similar approach six years ago, announcing that it would reduce the number of its models from 45 to 26 on its three main brands, in order to save 300 million euros per year.
"Renault is much more international than its compatriot, whose sales are still focused on Europe," said another source. "But even if Renault's geographic diversity is behind its large number of models, this level is no longer sustainable."
The Espace model, which has sold 1.3 million units since its launch in 1984, would be the most notable. The car has become the standard transporter, at least in Europe, for the multi-purpose vehicle (MPV) segment.
However, the fifth generation of the model, on the market since 2015, struggled against competition from SUVs and its sales fell 21% last year to just 10,000 units.
Espace, as well as the compact Scenic minivan, another of Renault's best sellers, would give way to a new Kadjar model, an SUV built in Spain with versions of five and seven seats, said two sources. .
These two models, as well as the Talisman, are manufactured in the Renault factory in Douai, in the north of France. But the site would remain active with the planned assembly of two new models based on the new electric platform of the Renault-Nissan alliance.
To reduce costs and increase profitability, Renault also plans to leverage more synergies from its alliance with Nissan and Mitsubishi, sell real estate assets and close its operations in losing markets like China.
Acting Executive Director Clotilde Delbos said there would be no taboos on cutting costs, heightening fear of job cuts and plant closings. However, he is likely to be politically sensitive in France, especially when the group is in talks on state aid.
(This story has not been edited by NDTV staff and is automatically generated from a syndicated feed.)
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