BARCELONA – Renault Group will unveil an eight-year plan next year as the automaker contends with a demand slump exacerbated by the coronavirus crisis, CEO Luca de Meo said in an interview with a Spanish newspaper.
De Meo had flagged last month that Renault might have to dig deeper than the 2 billion euros ($2.3 billion) of cost cuts it has already outlined to get back on its feet after a sustained downturn in earnings since 2018.
"The next two years will be tough. We have an eight-year plan that we will be announced in January, and we can turn it all around," he told El Pais newspaper in an interview published on Sunday, without disclosing specific detail on the plan. De Meo is the former CEO of Volkswagen Group’s Spanish brand Seat.
Renault’s cost-cutting plan, announced earlier this year by CFO Clotilde Delbos, who will be de Meo’s deputy, will take three years to be fully put in place.
The automaker announced a record loss of 7.29 billion euros in the first half of the year, and secured 5 billion euros in loan guarantees from the French government in May amid the coronavirus crisis.
Renault Chairman Jean-Dominique Senard and Delbos said last week that Renault had tapped some of the available credit, but did not say how much.