Renault To Invest EUR5.7 Billion In Industrial Sites

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

Nissan Motor (PK) (USOTC:NSANY)
Historical Stock Chart
From Jun 2024 to Jul 2024