By Mauro Orru
Renault SA said Friday that it would cut more than 14,000 jobs over three years as part of its draft plan to reduce fixed costs by more than 2 billion euros ($2.21 billion).
The French car maker said around 4,600 jobs affected are in France, with more than 10,000 in the rest of the world.
The draft plan, which has an estimated implementation cost of EUR1.2 billion, entails a cut in global production capacity to 3.3 million vehicles by 2024 from 4 million in 2019, as well as the suspension of planned capacity increase projects in Morocco and Romania.
Renault is targeting production saving costs of roughly EUR650 million, around EUR700 million in support functions and approximately EUR800 million in engineering costs.
"The planned changes are fundamental to ensure the sustainability of the company and its development over the long term. It is collectively and with the support of our alliance partners that we will be able to achieve our objectives and make Renault a major player in the automotive industry in the years ahead," said Jean-Dominique Senard, chairman of the board of directors.
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