Exclusive: Renault’s De Meo Says More Cost Cuts May Be Needed – Memo

De Meo, a former Volkswagen executive who took over as CEO in July, did not give a figure for how much more money the company needed to save.

Asked to comment on the memo, a Renault spokesman said De Meo was working on a plan to transform the company by focusing more on profitability than sales volumes.

Renault acknowledged in May that its global ambitions had been unrealistic and announced plans to cut about 15,000 jobs, shrink production and restructure French plants in a bid to slash 2 billion euros from its costs.

De Meo said in the memo that Renault should model itself on the turnaround path followed by rival PSA, the maker of Peugeot cars, which has focused on trimming costs and producing more profitable vehicle ranges in recent years.