Third Union Accepts Renault’s Restructuring Plan
News: France's CFDT labour union has accepted Renault's restructuring plan, which involves cutting 7,500 jobs and freezing wages. The CFDT union has become the third labour union to accept the plan after the FO and CFE-CGC unions said that they would support the plan. The three unions account for around 64% of Renault employees. The deal will allow the automaker to cut its workforce in France by 17% by 2016 through attrition. Meanwhile, the CGT union is yet to announce its decision on the agreement.
BMI View: BMI has long maintained a bearish outlook on autos production in France, and we expect competitiveness issues to continue to affect the sector. BMI forecasts vehicle production in France to decline 3% in 2013, and we maintain a generally bearish outlook for the sector over the remainder of our 2017 forecast period.