Luca De Meo acknowledges that 2 billion euro is not enough to save the company

The new boss of the French automaker Renault warns of additional interventions, in addition to the EUR 2 billion in cost savings that had already been announced. Luca De Meo wrote that in a memo.

Renault has already announced plans to cut 14,600 jobs worldwide and reduce production capacity by one fifth. By 2022, this should bring about 2 billion in cost savings, including EUR 600 million this year.

According to Luca De Meo, Renault should now also reduce its product range by 30%. Contracts with suppliers also need to be revised. He took branchegenoot PSA, the company behind brands such as Peugeot and Citroën, as a successful example.

The top man officially got the reins at Renault in July. This was shortly before the automaker put a record loss of EUR 7.3 billion in the first half of the year in the books. This was due to the consequences of the coronacrisis and continued misery with his partner Nissan.

Luca De Meo stated aloud that Renault is not used to making profits in a sustainable and solid way. The results and sales figures are under pressure and the latest models are not profitable enough either.

Luca De Meo also offered some insight into how he sees the future of Renault’s alliance with Nissan and Mitsubishi. This partnership was under pressure following the arrest of former top man Carlos Ghosn in 2018. The current Renault boss said he was in favour of cooperation, particularly in areas such as research and development. He also wants to strengthen the position of the automakers worldwide.