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Renault to detail job cuts in market downturn
French carmaker Renault (RENA.PA: Quote, , Research, )will detail a job-cut plan on Tuesday to help it meet profittargets, even though it recently abandoned an ambitious salesvolume growth goal in the face of a market slowdown.
The central works council of the world's ninth-biggest autogroup by sales will meet at the company's Boulogne-Billancourtheadquarters, near Paris, from 1130 GMT to get details of a planwhich is expected to mean several thousand job cuts from itsglobal workforce of around 134,000.
A few blocks away from the works council meeting, Renault'scommercial staff is making internal presentations of the newMegane car model that will be unveiled at the Paris Auto Show inOctober, and which will compete with the new Golf fromVolkswagen (VOWG.DE: Quote, , Research, ), unveiled in Iceland on Monday.
At the unveiling, VW Chief Executive Martin Winterkorn saidthat market conditions could deteriorate in 2009 .
Renault is not the only car group reducing output plans andstaff numbers due to the economic slowdown and a spike in pricesfor steel and oil that is denting consumer confidence.
General Motors Corp (GM.N: Quote, , Research, ) and Ford Motor Co (F.N: Quote, , Research, ) last weekcut second-half production targets but held out hope that thenear-freefall in overall sales seen in the summer had slowedsomewhat in August as consumer confidence steadied.
The world's biggest carmaker, Toyota Motor Corp (7203.T: Quote, , Research, ),last month cut its 2009 unit sales outlook by some sevenpercent.
French Industry Minister Luc Chatel told BFM radio onTuesday that 'one cannot eternally ignore the market', addingthat the government would work with Renault and PSA PeugeotCitroen.
The central works council of the world's ninth-biggest autogroup by sales will meet at the company's Boulogne-Billancourtheadquarters, near Paris, from 1130 GMT to get details of a planwhich is expected to mean several thousand job cuts from itsglobal workforce of around 134,000.
A few blocks away from the works council meeting, Renault'scommercial staff is making internal presentations of the newMegane car model that will be unveiled at the Paris Auto Show inOctober, and which will compete with the new Golf fromVolkswagen (VOWG.DE: Quote, , Research, ), unveiled in Iceland on Monday.
At the unveiling, VW Chief Executive Martin Winterkorn saidthat market conditions could deteriorate in 2009 .
Renault is not the only car group reducing output plans andstaff numbers due to the economic slowdown and a spike in pricesfor steel and oil that is denting consumer confidence.
General Motors Corp (GM.N: Quote, , Research, ) and Ford Motor Co (F.N: Quote, , Research, ) last weekcut second-half production targets but held out hope that thenear-freefall in overall sales seen in the summer had slowedsomewhat in August as consumer confidence steadied.
The world's biggest carmaker, Toyota Motor Corp (7203.T: Quote, , Research, ),last month cut its 2009 unit sales outlook by some sevenpercent.
French Industry Minister Luc Chatel told BFM radio onTuesday that 'one cannot eternally ignore the market', addingthat the government would work with Renault and PSA PeugeotCitroen.