Renault CEO Prods Staff to Emulate French Peer’s Cost Discipline

Renault SA’s new chief executive officer warned employees he might have to cut costs beyond the 2 billion euros ($2.4 billion) already planned and called for the carmaker to emulate arch-rival PSA Group for the next half decade.

While the savings plan announced in May was a “first solid step” toward competitiveness, CEO Luca de Meo wrote in a memo seen by Bloomberg News that Renault may have to lower expenses further through 2022. The auto-industry veteran hired away from Volkswagen AG earlier this year also said the French company needs to shrink its product range by 30% and revise supplier agreements.