Renault Cuts Production in Slovenia

Renault Cuts Production in Slovenia

While reduction is temporary, the company is working with partners to determine how to further adapt production to a poor market environment.

The Slovenian unit of French car maker Renault (IW 1000/78) announced on Thursday it will reduce production this month to cope with a stronger drop of demand than initially forecast.

"During a period of September we will organize production in only one shift (instead of two)," Ales Bratoz, head of Renault's Slovenian unit Revoz, said.

He added the unit "will produce only the vehicles we have received orders for, in times of crisis we cannot afford to produce reserves."

Bratoz said the reduction of production was temporary but added management has started talks with social partners over how the company could further adapt production to a poor market environment.

"Our objective is to preserve the current jobs as long as possible," Bratoz said.

The Revoz plant, with some 2,000 workers, produces Renault's Twingo, Clio II and Wind models.

In April, the unit suspended its night shift and cut 330 jobs to cope with a drop in demand.

The plant is Slovenia's second-largest exporter and produced over 170,000 cars in 2011.

Copyright Agence France-Presse, 2012

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