Renault shelves expansion plan in Morocco

Car maker produces 300,000 vehicles annually in Morocco

  
The logo of French car manufacturer Renault is seen at a dealership of the company in Strasbourg, France, January 10, 2019. The slogan reads "life, with passion".

The logo of French car manufacturer Renault is seen at a dealership of the company in Strasbourg, France, January 10, 2019. The slogan reads "life, with passion".

REUTERS/Vincent Kessler

French carmaker Renault has decided to suspend plans to expand its production unit in Morocco as part of austerity measures prompted by a market plunge due to the spread of coronavirus, a Moroccan newspaper reported on Sunday.

Renault began making cars in the North African country in 2012 from its production facility in Tangiers, with a capacity of 300,000 vehicles a year.

"Renault has decided to suspend its plans to expand production units in Morocco as part of cost-cutting measures worldwide due to the spread of Corona pandemic," Hespress said, quoting a Renault statement.

Renault said on Friday it would slash 15,000 jobs worldwide within a two-billion-euro ($2.2 billion) cost-cutting plan following a sharp drop in sales. Nearly 4,600 jobs will be cut in France and more than 10,000 in the rest of the world over three years, it added.

(Writing by Nadim Kawach; Editing by Anoop Menon)

(anoop.menon@refinitiv.com)

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