What has happened to the once-thriving French car industry?
Recently it was announced that, amongst other cutbacks, Peugeot-Citroen will drastically reduce output by closing its big Aulnay factory near Paris, with the loss of 8,000 jobs, in an attempt to stem crippling financial losses which are in the region of £150 million per month!
Now, hot on the heels of that news, Renault has seen its share price drop after abandoning its growth target for 2012.
Amid spiralling costs, Renault has seen its sales decline by an alarming 14.9 per cent in Europe this year and now Jerome Stoll, the company’s commercial director, has said he was “awaiting with confidence” a new support package for the sector from the French government.
In the UK alone, Renault has seen its sales plummet over the last decade. Even just two years ago, its market share in the UK was almost 5 per cent – now it has shrunk to a worrying 1.85 per cent in the first half of this year!No Comments