French Carmaker Renault To Up Prices, Freeze Recruiting, Delay Projs On Adverse Mkt Conditions

Renault said the economic climate had deteriorated by far more than it had imagined when it drew up a business plan called Renault Contract 2009, and it will apply an action plan to preserve competitiveness and profitability, the company said in a statement.

The carmaker plans to cut 10% in overheads, mainly through a program for voluntary job cuts which would be concentrated in Europe. The company is also freezing recruitment in Europe and non-essential projects will be frozen or delayed.

Renault will also raise the sales prices of its vehicles to match a rise in raw material costs.