For the inventory market, Renault exploded into 5 firms

On November 8th, Renault formalized its reorganization plan – the explosion of Renault. Why easy if complicated is another option?

Renault should be divided into 5 units. Ampere (without an accent because we want to be global) for electric car production, Power for thermal and hybrid vehicles, Mobilize for mobility services and banking, Alpine for ostentatious luxury and finally the “circular” recycling of the old. Plus another Horse company integrated into Power, which will be a manufacturer of thermal and hybrid engines for all Renault in a 50/50 partnership with the Chinese company Geely. Without forgetting that an alliance with Nissan still does not approve the project.

New organizational charts that don’t change much in terms of the actors’ working conditions? That would be completely wrong, because it’s about breaking the rights gained through the division of tasks and personnel. In the Renault plan, each entity becomes independent with its managers, its own financial accounts and profitability to regularly spit it out for shareholders.

amp to attract capital

Ampere’s first goal is to raise capital after the IPO. What excites them all is the auto company Tesla, which has reached a market capitalization of $600 billion by selling a million cars a year worldwide today, priced between €55,000 and €100,000 each. The other side of Tesla’s financial success is the working conditions at the historic Caifornia factory, where work-related injuries were a third higher than the North American average and where, according to founder Elon Musk, working hours have reached 12 hours 7 days out of 7. This is their innovation model!

Everything is to be bought and sold between the new companies. Horse engine factory becomes an equipment supplier like any other, looking for customers among all globalized manufacturers. Ampere will compete with other vendors for the technology van left over from the Technocentre.

Five companies under the 10% profitability constraint

The goal of Renault management goes beyond the creation of Ampere, to bring all production under the direct control of shareholders and the financial markets. Each of the companies that emerge from this Renault explosion must have a profitability of at least 10%. Go or die, it will be their penalty!

Differences in status, jobs and wages everywhere

This will lead to an explosion in working conditions and wages. We were already familiar with the separation between Renault employees and temporary workers or service providers at the same workplace. They now want to enforce the presence of companies with different salaries and collective agreements in the same workplace. Renault is now proposing that some automatically transferred would keep their old Renault status, introducing a new segregation between old and new recruits in the established companies.

Prior to this offensive, Ghosn had largely begun the work by removing the majority of automobile manufacturing activities from French territory. Luca de Meo continued his June 2020 restructuring plan with the elimination of 15,000 jobs worldwide, including 4,600 in France. That plan was executed, he said, ahead of the original schedule.

don’t let it go

The announced dismemberment in France is more study or manufacturing activity for thermal or hybrid engines. Today, the Cléon engine factory and the Lardy and Guyancourt research centers are at the forefront of threats and attacks. The resistance prepares. “We will not allow it” declares the CGT union of Renault Lardy, one of the most threatened Renault plants. This call for mobilization contrasts with the silence of the central organs of the main unions. They are reviewing documents presented by management before a Renault social and economic committee that will meet in December for comment. No trade secrets: everything must be published by then. No time limit for preparing the resistors!

Prevent car companies from causing damage!

Will we allow an entire social organization to fall apart and its rights fought for generations? Do we want to tolerate that with state subsidies in the billions?

Stopping auto companies, those instigators of the climate crisis and social collapse, from continuing to wreak havoc is everyone’s business, not just auto workers. They want to ruin everything. Those who need to be turned upside down as a matter of priority are bosses and shareholders to dispossess.

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