Renault-Nissan Plan Big Job Cuts in India

The Renault-Nissan Alliance intends to cut production 50% at its assembly plant outside Chennai, India, and eliminate as many as 3,000 jobs in the country, according to The Economic Times.

A source tell the Mumbai-based newspaper that the Oragadam facility, which makes Renault, Nissan and Datsun brand vehicles, will slash hourly output to 20 units from 40. Renault-Nissan confirms it is adjusting production but disputes the reported figures.

Nissan and Renault sales in India fell 20% and 5%, respectively, to a combined 27,800 vehicles in April-July, according to the Society of India Automobile Manufacturers. Combined exports by the partners slipped 3% to 34,100 units over the same period.

The five-year-old Chennai facility has capacity to make 400,000 vehicles per year. But ET says Renault and Nissan have reduced combined monthly production to about 4,000 units from 12,000 as inventories grow.

The plant, which is preparing to launch the Renault Kwid mini-crossover, currently makes Nissan Micra mini-hatchbacks and Terrano small SUVs and Renault Lodgy MPVs and Duster small SUVs.