Third Union Accepts Renault’s Restructuring Plan
News: France's CFDT labour union has accepted Ren a u lt'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.