Industry-wide slowdown in sales: French carmaker Renault announced 6,000 job cuts

Because of an industry-wide slowdown in sales, the French carmaker Renault announces 6,000 job cuts.

According to Renault, about 4,900 jobs would be cut in France while the number would go 1,100 in other European countries.

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However, a severe reaction has been shown by the French unions to the news and CGT union has called for one-day strike on Thursday.

The CGT union is asking President Nicolas Sarkozy to arbitrate the issue. Almost 15% of Renault’s shares are owned by the French government.

During July this year, Renault announced that it had fallen behind on its sales targets while the company’s half-year profits had raised 37% .The current move follows that announcement.

Almost 1,000 jobs will be cut in Sanouville plant of Renault that is located in western France and gives the firm its current large size. Renault has also stopped hiring of the new staff.

The company says that now it’s planning to sell around three million vehicles instead of its settled target of 3.3 million vehicles earlier this year.

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