Renault claims it may disappear if slump continues
on 29/09/2012 00:00:00
He said: "Each company is tied to its home country. I do not know of any company that can be viable, that can prosper from a base that is not competitive. A company needs a natural base, Renault's natural base is France."
Carmakers in Europe are struggling to cope with a glut of excess capacity amid a sustained market decline. Renault has forecast a 13% drop in the car market in France and an 8% decline in Europe this year.
French competitor PSA Peugeot Citroën has said it plans to cut more than 10,000 jobs, close one assembly plant, and shrink another. Ghosn added that Renault had no plans at this stage to cut jobs in France. But Renault intends to ask unions for a new deal on pay and conditions to avert mass layoffs, chief operating officer Carlos Tavares said.
He said European car markets may take three to five years to return to pre-crisis levels. "We are not certain to have touched bottom yet."