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Renault CEO warns deeper cost cuts may be needed

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PARIS — Renault may have to lower additional prices than the 2 billion euros ($2.four billion) in discounts previously prepared to get back again on its ft, CEO Luca de Meo stated in an interior memo seen by Reuters.

“The aim is to get back again on the correct monitor and to take care of our most urgent challenges as rapidly as probable: treasury and prices. This suggests we will maybe require to go even more than prepared with our price tag-cutting endeavours,” he stated in the memo.

De Meo, a former Volkswagen Team government who took demand of Renault in July, did not give a figure for how much additional funds the firm desired to help save.

Questioned to comment on the memo, a Renault spokesman stated de Meo was operating on a prepare to remodel the firm by concentrating additional on profitability than gross sales volumes.

Renault acknowledged in May that its worldwide ambitions experienced been unrealistic and introduced options to lower about fifteen,000 jobs, shrink creation and restructure French crops in a bid to slash 2 billion euros from its prices.

De Meo stated in the memo that Renault ought to model itself on the turnaround path adopted by rival PSA Team, which has centered on trimming prices and generating additional rewarding motor vehicles since Carlos Tavares took in excess of as CEO in 2014.

“We will require to consider choices that are occasionally complicated, but are essential and positive for the firm. I would explain it as a revolution,” he wrote in the memo.

“This revolution, which have to be pushed forward by all the males and gals of the firm, I’m contacting it a ‘Renaulution’.”

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