Renault To Invest EUR5.7 Billion In Industrial Sites
February 02 2011 - 9:20AM
Dow Jones News
French car maker Renault SA (RNO.FR) Wednesday said it plans to
invest EUR5.7 billion in its industrial sites between 2010 and
2013, including 40% in France, as part of its new medium-term
strategic plan, and that there are no plans for plant closures or
massive layoffs as it tries to adjust its production capacity and
staffing to shifts in global demand while remaining
competitive.
The company said it expects a "lasting decline" in the European
market, and that forecasts for 2016 "do not see the European auto
market returning to its pre-crisis level of 2007." Automobile
market growth will be driven by markets outside Europe, notably
Brazil, Russia, India and China, the company said, adding that the
non-European market is likely to expand by nearly 50% by 2016.
"Our strategic plan enables us to adjust industrial capacity to
global demand, without closing sites or implementing redundancy
plans or staff reduction plans," Chief Executive Carlos Ghosn said
in a press release.
Renault will present its medium-term strategic plan on Feb. 10,
along with its 2010 full-year results.
France's No. 2 auto maker said it is adjusting its industrial
base as part of the plan and is "adapting" capacity in Western
Europe. It will focus on higher-added value products, chiefly
European middle- and upper-range vehicles, light commercial
vehicles and electric vehicles and their motors and batteries.
Plant capacity is being expanded in the rest of the world,
especially in emerging markets such as Russia, India and Brazil,
Renault said, as it aims to generate 43% of its sales outside
Europe in 2011, compared with 37% in 2010 and 17% in 2000.
-By David Pearson, Dow Jones Newswires; +331 4017 1740;
david.pearson@dowjones.com
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