Tough language?

It appears as if only bad news is real news.  As soon as there is even the slightest hint of gloomy news to report, the world’s press either pops up or simply repeats what other media have reported already.  At the end of May, large clouds appeared to gather over Renault.  Big headlines in newspapers and on the internet announced the departure of several models, factories were to be closed and perhaps even one of the brand names would be lost.  On top of that, came the statement from the French Minister of Finance that Renault might possibly disappear.  All not very uplifting, but the true enthusiast will always maintain confidence in his or her brand, in spite of everything.  That turned out to be right, too.  The French minister in question already held a pen in his hand, poised to sign a subtantial loan.  The French state is a shareholder in Renault and Renault is one of the largest employers in France, so France is keen to keep the historic company going.

So why did the minister talk such tough language?  I, myself, think that it was all public relations, prepared by the government.  Naturally, there are other companies knocking on the door for support and, by playing a little 'hard to get', it was made clear that money was not available for any old company to scoop up.

The good news is that Alpine will continue to exist; that the Flins plant will even be given additional tasks and that Renault actually does not delete half of its model range from one day to the next.  Within the restructuring plan, there are many developments, which have been en route for a long time, - such as the production at the Douai plant of an electric SUV on a new platform.  Furthermore, it is logical that current models will have to make way for those vehicles.  Renault's new electric models have been under development for some years - just as have successors to the Kadjar and the European version of the Arkana, both of which will come with a hybrid powertrains.

I think that the reduction in Renault’s production capacity is a wise decision.  There is large overcapacity in the automotive world, so the only real solution is to reduce that capacity.  But, as always, Renault remains fully unchanged with its electric models, a strong role for vans and much more...

Tony Vos, editor/publisher Losange Magazine