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Renault could close Alpine factory and axe models, reports suggest

Today's press release from Renault states the following:

"Open reflection on the reconversion of the Dieppe plant at the end of the production of the Alpine A110."

Interesting choice of words, but was there a date by which A100 production would end? Are they waiting for demand to tail off, as it did in Feb 2020 when compared to Feb 2019, or will Renault kill it, and all other Renaultsport models, and then convert the Dieppe plant for some other purpose?

Below are some excerpts from an article by Motor Authority.

"On Friday, Renault announced a major restructuring that has seen six plants placed under review and 14,600 jobs worldwide placed on the chopping block. Among the plants under review is the small Dieppe plant in France responsible for the Alpine A110 sports car, production of which numbers less than five thousand units annually."

"The French government, which owns a 15-percent stake in Renault, is considering making a five billion euro rescue loan to the automaker but said it will not sign off until talks between management and unions over the cost cuts are finalized."

"The modern Alpine A110 was in trouble even before production started in 2017. The car was originally to be develop alongside a sister model from Caterham but the British sports car marque pulled out of the deal due to its own financial setbacks. Renault forged along on its own but with such low sales numbers for the A110, the future of the car and the Alpine brand doesn't looking bright."

So, Renault will not get the Euro 5 Billion loan until after they announce all their plans...so I guess there is more to follow.

Autocar have chipped in saying that Alpine could become electric-only performance brand! [smilie=icon_eek.gif]

This ties in with the article I found and included in one of my posts above - the code name for this mode is PZ110.

"Senard said a final decision on Alpine’s future would be taken by incoming chief executive Luca de Meo, who is due to take up his role at the French firm in July."
Oh well...
 
Following today's press release (see above), looks like Evo has the inside story on the future of the A110 and that of the Dieppe plant: Renault announces future road map – Alpine A110 safe, for now.

"As part of a wide-reaching €3 billion cost-saving plan over the next four years, the Alpine A110 and its Dieppe manufacturing facility have been under threat of closing, but a source within Renault tells us the Alpine A110 will see out its full seven-year production run, ceasing in 2024. The likelihood of a second generation A110 remains slim though, with the Dieppe facility tipped for conversion for alternative projects after 2024."
 
Lankan":2fem2yay said:
Following today's press release (see above), looks like Evo has the inside story on the future of the A110 and that of the Dieppe plant: Renault announces future road map – Alpine A110 safe, for now.

"As part of a wide-reaching €3 billion cost-saving plan over the next four years, the Alpine A110 and its Dieppe manufacturing facility have been under threat of closing, but a source within Renault tells us the Alpine A110 will see out its full seven-year production run, ceasing in 2024. The likelihood of a second generation A110 remains slim though, with the Dieppe facility tipped for conversion for alternative projects after 2024."

Or the "inside story" as per my post 8 days ago when I said the Alpine brand would continue, as would the A110 and the next model would be an SUV and the only issue was where it would be built because they were going to consolidate production of similar cars to the same plant.
EVO are not the only ones with sources ;)
 
rustedandrotten":hcus2wob said:
News today still gives the impression that 15000 will lose jobs along with model rationalisation even after 8 bn euro bail out by French government. Nissan have closed Barcelona plant but are retaining Sunderland and there is talk of relocation on some Renault production to there as well! Interesting times [smilie=icon_eek.gif]

I assume you are talking about Renault when you say 15000 job losses but they are not getting any 8bn euro bail out? you are mixing up stories.
The Government is injecting 8billion of money into rebates/discounts/schemes etc to customers to promote things like electric and hybrid cars for example.
There is no "bail out" of car companies
 
Lankan":3bnlcuss said:
Today's press release from Renault states the following:

"Open reflection on the reconversion of the Dieppe plant at the end of the production of the Alpine A110."

Interesting choice of words, but was there a date by which A100 production would end? Are they waiting for demand to tail off, as it did in Feb 2020 when compared to Feb 2019, or will Renault kill it, and all other Renaultsport models, and then convert the Dieppe plant for some other purpose?

----------AFTER all the investment in design and tooling the car will stay in production for its full life cycle and even longer even if it's for 1000 a year. They did it with Vel Satis and would have done it for Avantime if Matra had not closed the factory

Below are some excerpts from an article by Motor Authority.

"On Friday, Renault announced a major restructuring that has seen six plants placed under review and 14,600 jobs worldwide placed on the chopping block. Among the plants under review is the small Dieppe plant in France responsible for the Alpine A110 sports car, production of which numbers less than five thousand units annually."

"The French government, which owns a 15-percent stake in Renault, is considering making a five billion euro rescue loan to the automaker but said it will not sign off until talks between management and unions over the cost cuts are finalized."

-------------THIS is not correct. The government is going to provide a loan GUARANTEE which means Renault will get a better interest rate from the BANK for the loan. This is against EU policy but these restrictions have been lifted during Covid 19 allowing up to 70% of the loan to be backed .
However Renault is leveraging every advantage it can with the help of the Government so it wanted 90% backing so that had to be signed off by the EU Commission which as I said days ago, has been achieved by all the media stories planted to create an impression they desperately needed the money.

During the Renault Press conference that I watched this morning they were asked how much cash reserve they had and they refused to answer! because again they did not want people to realise it had been a game of bluff and they are perfectly financially viable. AS per their last annual report only 5 months ago which stated they had 19 billion is cash alone



"The modern Alpine A110 was in trouble even before production started in 2017. The car was originally to be develop alongside a sister model from Caterham but the British sports car marque pulled out of the deal due to its own financial setbacks. Renault forged along on its own but with such low sales numbers for the A110, the future of the car and the Alpine brand doesn't looking bright."

So, Renault will not get the Euro 5 Billion loan until after they announce all their plans...so I guess there is more to follow.

------------IT can have the loan any time it likes but if it wants the super low interest rate with the Govt backing it spents a month manoeuvring for it will have to discuss their plans with the Govt who want them to keep all French factories open

Autocar have chipped in saying that Alpine could become electric-only performance brand! [smilie=icon_eek.gif]

This ties in with the article I found and included in one of my posts above - the code name for this mode is PZ110.

"Senard said a final decision on Alpine’s future would be taken by incoming chief executive Luca de Meo, who is due to take up his role at the French firm in July."
Oh well...


I have inserted the answers and corrections in bold above for anyone interested.
 
Mildly related - Renault have announced they WILL be staying in F1 with a works team for the forseeable future.
 
"AS per their last annual report only 5 months ago which stated they had 19 billion is cash alone"
Graeme, I have now looked at Renault Automotive's 2019 Earnings Report (released December 2019), and I cannot find the Euro 19 billion cash you mention.

A summary from the 2019 Earnings Report is as follows:

AUTOMOTIVE NET CASH POSITION

The Automotive segment’s liquidity reserves (including AVTOVAZ [that builds the Lada]) stood at €15.8 billion as of December 31st, 2019. This reserve consisted
of:
€12.3 billion in cash and cash equivalents;
• €3.5 billion in undrawn committed credit lines

At December 31, 2019, RCI Banque had available liquidity of €9.6 billion, consisting of:
• €4.5 billion of undrawn confirmed credit lines;
• €2.4 billion of central-bank eligible collateral;
• €2.2 billion of high quality liquid assets (HQLA);
• €0.5 billion of financial assets.

Automotive Net cash position: 2019 €1,734 million vs 2018: €3,702 million, so at €1.734 billion the net cash position is almost half of what it was in 2018.

So, as I understand it, Renault has €12.3 billion in cash, and a line of credit for a further €3.5 billion. However, their net cash position is €1.734 billion, and they have a burn rate of €600 million per month, with declining sales.

If one includes all of the credit lines and liquidity reserves then that makes for a highly leveraged position, which I don't think of as having cash reserves.

Have I got the wrong information, or do you have more insight/info than what is available in the 2019 Earnings Report?
 
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