Wednesday, August 31, 2016

France accused Renault factory switch protectionism

He speaks perhaps of a Volkswagen and Fusion FCA



France accused Renault factory switch protectionism.
Renault announced that cars Clio Campus currently performed at the factory in Novo Mesto in Slovenia would be produced in Flins, west of Paris in June, saying the switch would create 400 jobs.
It came despite previous assurances from France that it would not resort to protectionism to protect French jobs in the economic crisis.
President Nicolas Sarkozy has caused outrage in Eastern Europe last month by offering to relocate the auto plants run by French producers.



He granted June 5 billion in loans to Renault and Peugeot Citroen flexible in exchange for a promise not to shut French plants or ax French jobs France the condition dropped, however, after objections from the European Union.
But the French Secretary of State for Industry, Luc Chatel, has suggested that Renault movements were part of a quid pro quo agreement for state aid.
He said that the production of a model that has so far been produced outside France will go home.
The automaker called the Slovenian website could not meet the demand for Clio and Twingo models, it is on a single production line.
He said he would seek to fill new jobs in France by transferring other French sites workers A spokesman insisted the move would lead to job losses in the Slovenian plant, which is at capacity .


However, Mr Chatel remarks have triggered the immediate concern of the European Commission.
The Commission will ask the French authorities for explanations, said Jonathan Todd, spokesman on competition issues What is surprising in this case is that the industry minister Luc Chatel made the declaration which would be directly linked to a plan french car.
He said it seemed to contradict the letter to Neelie Kroes Competition Commissioner, who said that there was no link between the aid schemes in the automotive sector and the location of the car production, at -he adds.
Kroes If that is the case, it is illegal aid, I am very surprised with this last message to the same person who wrote to me not long ago, less than a fortnight, to say the loan agreements with automakers contain no or regarding the location of their activities or provided preference to suppliers in France.
M. Sarkozy denied foul play This is not cutting jobs in Slovenia, he said after an EU summit in Brussels is exactly what I want, we can defend production in France without costing jobs in Slovenia There makes me happy.
President José Manuel Barroso said Mr. Sarkozy, saying he saw no evidence of a breach of EU internal market rules.



We have no confirmation of any action which is contrary to internal market rules, he said, I think there was a misunderstanding about words.
But Borut Pahor, Slovenian Prime Minister, said he shared the concerns of the European Commission, adding that we must be very careful about the possible protectionist measures.
I'm not saying that's the case, but if it is, today I appreciate a lot of reaction from the Commission, which was very fast.
The line could not have come at a worse time for the EU, as leaders gathered in Brussels asked the United States and others to deal with the global crisis and avoid all forms of protectionism.
Renault last month said its net profits dropped 78 percent last year amid collapse in global demand for cars following the credit crisis However, small cars like Clio and Twingo bucked the trend France, supported by an incentive program to encourage breaks cashback low emission vehicle purchases.
Renault said yesterday that it was increasing production in France because the Slovenian website was full capacity and needed to ramp up its production of Twingo.



The director of the Flins Renault said it was no question of relocation, but rebalancing and that the site was chosen as it had already produced the same model Clio.
The powerful CGT union said job outsourcing has nothing to do with Renault pseudo-commitments related to state aid for the automotive sector.







France accused Renault factory switch protectionism, France, accused protectionism, Renault.