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Renault Plans on Reducing The Developing Subcontractors

by | May 1, 2020 | News

Measures to restore the financial situation

Renault plans to reduce the number of contractors it is working with to develop new models. This comes in the context in which before the outbreak of the Covid-19 crisis the company ended 2019 with its first net losses in the last 10 years. The plan is to save up to 200 milion Euros per year, said two sources from the company to Reuters.

Renault’s engineering department will play a central role in this savings program. Sources claim that Gilles Le Borgne intends to reduce the number of subcontractors Renault works with from 15, currently to four or five. “There will only be a few large subcontractors who will share 80% of their cake, but who will have to make us better global offers,” said one source. Companies in the automotive industry frequently outsource development tasks to engineering companies such as Altran, Segula, Expleo, Alten or Akka.

It is due to outline some 2 billion euros in cost cuts from mid-May, on a 3 years periond, alongside a joint strategy update with Nissan on how to reboot their partnership, as the company struggles with shrinking margins.

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2 Comments

  1. glyn scothern

    to save French jobs increase the cost of parts to Dacia ,then oeople will buy French cars,

    Reply
    • Michael

      It might be a solution, but most of the people buy the Dacia models because of their price. Increased price on parts eqauls increased price on Dacia models and lower sales numbers:D.

      Reply

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