Renault says China, South Korea plants restarting post coronavirus shutdown

French automaker Renault said Monday it was resuming production at two factories in China and South Korea after they were shut down as authorities tried to limit the coronavirus outbreak.

"All of the group's factories are currently shut down, except for the factories in China and South Korea, which have resumed operations or are in the process of doing so," the company said in a statement.

Renault's site in Wuhan, the epicentre of the outbreak, was taken offline in late January. It has an annual production capacity of 150,000 vehicles.

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The Busan factory in South Korea, which turns out 216,000 cars a year, was stopped on February 7.

Renault has already warned of possible factory closures as it races to cut costs amid the coronavirus crisis, after posting a net loss of 141 million euros (USD 156 million) for 2019 -- its first year in the red in a decade.

Unit sales fell 3.4 per cent last year to 3.75 million vehicles.

The French government, which owns a 15 per cent stake in Renault, has said it will be "vigilant" over plant closures or job cuts.

Renault unveils AMT version of Triber, launch in 2nd quarter of the year

French car maker Renault unveiled the AMT version of its sub-compact multi-purpose vehicle Triber at the Auto Expo here on Wednesday.

The AMT version, which is set to be launched in the second quarter of the year, was unveiled by Fabrice Cambolive, senior vice president and chairman of Africa-Middle-East-India-Pacific Region for Renault Group along with Renault India Chief Executive Officer and Managing Director Venkatram Mamillapalle. Triber has been a volume driver for Renault in the domestic market with the company selling over 28,000 units of the seven-seater car since its launch in India in August last year.

"With Renault Triber, our commitment was to launch a car that would redefine the conventional notions of the Indian automotive industry. It also gave us the opportunity to be present in the largest and the fastest growing segment of the Indian automobile market. Today, we will take another step forward in the Triber journey with the reveal of the Renault Triber Easy-R AMT," Mamillapalle said.

The AMT technology is becoming a popular choice across segments, he said adding, "with the Renault Triber Easy-R AMT, we will continue our pursuit of growth in 2020, led by a strong product plan and a strategic and collaborative approach with all our partners." The AMT version comes fitted with 1-litre energy engine, offering a great balance between performance and fuel economy with low total cost of maintenance, the company said.

Renault recently also commenced exports of the MPV to South Africa and SAARC region.

Renault will continue this growth momentum and expand the exports of vehicle to other parts of Africa and SAARC region, alongside growing the Triber family in India, Mamillapalle said.

The launch of Triber together with the new Duster and Kwid has ensured that Renault is progressing despite the challenging macro-economic environment in India, he said.

Renault India sales stood at 88,869 units last year, a growth of 7.9 per cent over 2018.

It also exported more than 13,500 cars in 2019, Mamillapalle added.

Renault has expanded its network reach to more than 370 sales points and 450 service touchpoints, including 257 service workshops and 215 locations covered through 'Workshop On Wheels', as per the company.

The expansion in line with the company's focus on growing its presence in rural areas, Renault said.

With a developing product portfolio, increasing network and clear strategic direction, Renault is taking concerted efforts to grow the brand in India, which is an important market for the Group's global expansion plans, it said.

Renault, Castrol join hands for aftersales engine oil lubricants in India

French auto major Renault on Wednesday announced a partnership with Castrol India for supply of exclusive aftersales engine oil lubricants in India.

The partnership with Castrol India, leading automotive and industrial lubricant firm, will start from January 1, 2020, the company said in a statement.

This announcement is an extension of a global strategic partnership between Groupe Renault and Castrol, it added.

The two partners will also combine their expertise to deliver a jointly branded product range and premium experience to Renault customers, the company said.

Commenting on the partnership, Renault India Operations Country CEO & Managing Director Venkatram Mamillapalle said, "I am confident that Renault and Castrol's strong and growing partnership will enable us to combine the excellent skills and knowledge across both organisations to explore new opportunities in India's rapidly evolving market."

Sandeep Sangwan, who will take over as Castrol India Managing Director with effect from January 1, 2020, said the company will work closely with Renault to deliver high performance and advanced lubricants to its customers, and jointly develop breakthroughs for the transport of tomorrow.

The Renault Castrol product range will be available nationally across Renault dealerships from January 1, 2020, the statement said.

Renault Nissan offers 8.33% bonus to employees, Union not pleased

Automobile manufacturer Renault Nissan Automotive India Pvt Ltd has informed the employee union at its Chennai facility that it would be able to pay 8.33 per cent statutory bonus for the year 2018-19, as against the demand of 20 per cent, considering the current crisis in the industry. The Union is expecting further negotiations to arrive at a final bonus amount, said sources.

The Union had sought 20 per cent bonus without a ceiling and Rs 25,000 ex-gratia for FY2018-19. Last year, the bonus was 20 per cent and Rs 10,000 ex-gratia.

"If the bonus and ex-gratia are at the same level as last year, we might get Rs 39,000 per employee. However, the company has said that it will give only 8.33 per cent and this means only Rs 12,400 per employee, which is not acceptable," said a leader from Renault Nissan India Thozhilalar Sangam.

The company did not respond immediately to the message sent seeking its comment on the issue.

In a letter to the union, the company said that the Indian auto sector is in dire straits and is facing a crisis not seen in the past two decades. The company has also been hit by the crisis and the management is taking several steps to reduce to cost of the company to manage the crucial situation. It also said that the plant is operating at around 40 per cent capacity and also for this accounting year, there is no surplus that could be available for disbursement of bonsu.

"However, inspite of the current situation, the management is pleased to offer 8.33 per cent statutory bonus for the financial year 2018-19 for all the eligible employees as per he payment of Bonus Act, 1965. As mentioned, the management will disburse the bonus on October 18, 2019, to all eligible employees as per the regulation," said the company in the letter.

The the long term settlement the company has signed with the union, in February 20, 2017 has been expired on March 31, 2019 and there is no settlement in place for bonus and ex-gratia for the financial year 2018-19 it said.

The union said that it would expect further talks on the point with the management and would take decision on the course of action later.

Renault launches seven-seater Triber in India, prices start at Rs 4.95 lakh

French auto major Renault on Wednesday launched its compact seven-seater multi purpose vehicle Triber priced between Rs 4.95 lakh and Rs 6.49 lakh.

Triber is the second model from the company after Kwid which has been specifically designed and developed for the Indian market.

It is powered by a one-litre petrol engine and comes equipped with various features including four airbags.

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 "We foresee Triber to be a key part of our expansion plans in India, as we look forward to growing the Renault brand in this diverse and exciting automotive market," Renault India Operations Country CEO and MD Venkatram Mamillapalle told reporters here.

The new model would bridge the gap between Kwid and company's other SUV offerings like Duster and Captur, he added.

"We are focusing on rural areas for our growth. We see tremendous potential in rural markets. Triber will appeal not only to urban customers, but rural ones as well," Mamillapalle said.

The company said it has a robust strategy to build its presence in rural markets which offers significant growth potential.

The new model launch is part of the company's product offensive strategy aimed at doubling sales volume to two lakh units annually in the country within three years, the company said.

French carmaker Renault says it will block Nissan's governance overhaul

French carmaker Renault has warned its alliance partner Nissan that it will block the Japanese auto firm's plan to overhaul its governance structure, Nissan confirmed Monday, a move it called "regrettable."

In a statement, the Japanese firm said it had received a letter from Renault "indicating intention to abstain from voting", a move that would mean the proposed changes fall short of the two-thirds majority needed to pass.

"Nissan finds Renault's stance on this matter most regrettable, as such a stance runs counter to the company's efforts to improve its corporate governance," CEO Hiroto Saikawa said in a statement.

Renault's decision, first reported by the Financial Times, was taken over fears the proposed governance changes could reduce its influence, the paper said.

The move by Renault, which is Nissan's largest shareholder, is likely to further strain ties between the two firms after the shock arrest of former boss Carlos Ghosn. A spokesman for Renault contacted by AFP had no comment.

Renault is pushing for a full merger between the pair, but there is deep scepticism of the plan at Nissan.

Last month, Fiat Chrysler stunned the auto world by proposing a merger with Renault that would -- together with Renault's Japanese partners Nissan and Mitsubishi Motors -- create a car giant spanning the globe.

But the deal collapsed suddenly on Thursday, with the Italian-US carmaker FCA saying negotiations had become "unreasonable" due to political resistance in Paris.

Relations between Renault and Nissan have been tested over the arrest in November of their joint boss Ghosn, who awaits trial in Japan on charges of financial misconduct.

Nissan has said the alleged misconduct was the result of governance failings inside the firm, and that the proposed overhauls are necessary to ensure wrongdoing is not possible in the future.