Photo: Renault
As you might expect, he best and the brightest Europe has to offer in the carmaking business is not falling short and causing losses. In fact, it’s Opel’s advanced technologies that are selling Buicks in America and China, while Chrysler’s new Dart is powered by a Fiat engine.
But the labor force in the old world is too expensive, especially for automaker that are making a lot of non-premium cars. According to Automotive News, Renault COO Carlos Tavares and PSA executive VP Denis Matin told the French Senate that making cars in the Diamond is not profitable.
Tavares said that a Clio costs €1,300 (about $1,700) more to produce in France than it does in Turkey. This is even more damaging to the company now that automakers are dropping prices in order to sell cars, and Renault is only profitable because of the Dacia budged brand.
“French carmakers are not asking for a new round of financial help,” said Dieng, “but the freedom to properly restructure their domestic manufacturing footprint in order to maintain long-term viability.”
Tavares said that a Clio costs €1,300 (about $1,700) more to produce in France than it does in Turkey. This is even more damaging to the company now that automakers are dropping prices in order to sell cars, and Renault is only profitable because of the Dacia budged brand.
“French carmakers are not asking for a new round of financial help,” said Dieng, “but the freedom to properly restructure their domestic manufacturing footprint in order to maintain long-term viability.”
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