Renault targets lower production costs with French electric car hub

Renault targets lower production costs with French electric car hub

Renault (PA:RENA) is trading down 0.70% at 34.445

French carmaker Renault (PA:RENA) said on Wednesday it will combine three of its plants in northern France to form an electric car hub with lower production costs, which aims to turn out 400,000 vehicles a year by 2025.

Renault said creating the single plant, known as Renault ElectriCity, would lead to the creation of 700 jobs spread across the various sites, which currently employ nearly 5,000 people, by 2025.

The company, which is looking to produce fewer and more profitable cars under boss Luca de Meo, faces strong competition in the electric car market, an area in which it had an early lead but where bigger rival Volkswagen (DE:VOWG_p) is catching up.

Its French plan to create a new legal entity and combine the workforce from the three sites has backing from all the company’s unions, Renault said, and will entail further labour negotiations as it overhauls previous work agreements.

Talks will include reviewing gaps between some older contracts for 35-hour weeks that were paid at 39 hours and newer ones without that status, said Luciano Biondo, the head of the new industrial hub.

On technical fronts Renault (PA:RENA) RSI stood at 52.86 and currently stock is trading above all Moving Average. So, BUY position can be taken with following target and stoploss:

TRADE SIGNAL – : Renault (PA:RENA) – BUY: 34.43, TARGET: 35.55, STOP LOSS : 33.26

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