Renault may have to cut more costs than initially planned to get out of the red zone, and its cash-flow projections are alarming, the French carmaker’s new CEO said in an internal memo seen by Reuters.
Renault acknowledged in May that its global ambitions had been unrealistic and announced plans to cut about 15,000 jobs, shrink production and restructure French plants in a bid to save €2bn.Asked to comment on the memo, a Renault spokesperson said De Meo is working on a plan to transform the company by focusing more on profitability than sales volumes.
“Our cash-flow projections are alarming. More than ever, we must redouble our efforts to reach sustainable profitability, and generate cash flow,” he said.
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