Stock Markets9 minutes ago (Sep 09, 2020 06:35AM ET)
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PARIS (Reuters) – French carmaker Renault (PA:RENA) might have to dig deeper than the 2 billion euros of cost cuts it has already outlined to get back on its feet, new Chief Executive Luca de Meo said in an internal memo seen by Reuters.
De Meo, who dubbed his plan a “Renaulution”, said Renault should model itself on the turnaround path followed by rival PSA (PA:PEUP), the maker of Peugeot (OTC:PUGOY) cars, which has focused on trimming costs and producing more profitable vehicle ranges in recent years.
Renault had already flagged 2 billion euros of cost savings, including through job cuts, over the next two years.
Asked to comment on the memo, a Renault spokesman said De Meo was working on a plan to transform the company by focusing more on profitability instead of sales volumes.
Exclusive: Renault’s De Meo eyeing possible further cost cuts – memo
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