Tavares: Renault Doesn't Need To Be In France
October 1st, 2012 7:23 AM
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Renault is playing hardball in France. Message to government and unions: We can make our cars elsewhere. After Renault CEO Carlos Ghosn said last Friday that Renault could disappear from France “in its current form,” his Chief Operating Officer Carlos Tavares said that production in other countries could be cheaper.
Renault does not have to go to China for that. The Nissan plants in neighboring UK and Spain “are tops” Tavares told Automobilwoche [sub]. Renault and Nissan could share these plants, they already do that in Chennai, India.
Tavares does not think that the European market has bottomed yet. “This isn’t a storm that will subside soon,” Tavares said.
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What Goshn is doing, is a blatant appeal to French nationalism and pride, to coax the French government and most importantly, public opinion, for financial help. Hey, most automakers have become very adept at this practice, why shouldn't Renault?
There's precedent for Renault's presence in France to dwindle. Check the demographics--the French people are going out of business. Meanwhile, they're burning the railroad ties to keep the locomotive going.
Wouldn't surprise e if they make cars in te UK. Nissan has its most productive plant in the world there.
The reason Renault is in trouble is that the cars are poor quality and unreliable. The cars sold in Europe in the past 15 years have been especially poor. Doesn't matter where a car is built if it's rubbish that the public won't buy.