Renault CEO Says Europe Could Fall 2 More Years

You know what they say, once you hit the bottom, the only way you can go is up. We were pretty much convince we hit a low point in terms of sales and confidence in Europe, but Carlos Ghost, who was only recently re-elected as CEO Renault-Nissan, says he believes there are at least two more years of downturn for the European auto industry.
Renault Captur 1 photo
Photo: Renault
"I think that 2014 and 2015 are going to be at best stable in Europe," Ghosn said. "More realistically, we may see another decrease -- maybe not as violent or as deep as the ones we have seen for the last years."

The Renault CEO says that budget deficits are going to keep car demand low as a result of slowing consumer spending.

No matter how hard automakers are trying to lobby against this, heavy emissions taxation is being set in place across many European countries, meaning more money for the budgets but less demand from consumers who were already struggling.
To cope with decreased demand, Renault-Nissan is reorganizing production. The next generation of the Nissan Micra supermini will be manufactured in France from 2016, instead of India.

Despite all efforts to deal with overcapacity, Renault is also firing 17% of its employees in France and freezing pay in 2013.

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About the author: Mihnea Radu
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Mihnea's favorite cars have already been built, the so-called modern classics from the '80s and '90s. He also loves local car culture from all over the world, so don't be surprised to see him getting excited about weird Japanese imports, low-rider VWs out of Germany, replicas from Russia or LS swaps down in Florida.
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