Car Industry has suffered serious losses due to the pandemic of covid 19. As the virus spread and the car factories were forced to shut down the industry fell more and more into a spiral. Moreover depand has gone down leading to major losses. 

Renault cuts 15,000 jobs in major restructuring

Renault is cutting 15,000 jobs worldwide as part of a €2bn (£1.8bn) cost-cutting plan after seeing sales plunge because of the virus pandemic. "This plan is essential," said interim boss Clotilde Delbos, who announced a bigger focus on electric cars and vans.

Some 4,600 jobs will go in France, and Renault has said six plants are under review for possible cuts and closure. Renault played down reports it could move some production to the UK plant run by its strategic partner Nissan. "You shouldn't believe everything you read in the newspapers," Ms Delbos said. "All you've seen in the newspapers are but rumours."

On Thursday, Nissan unveiled huge job cuts and the closure of its factory in Barcelona. The UK plant, in Sunderland, would remain open, the Japanese company said. Renault, 15% owned by the French state and which is in talks with the government about an €8bn loan, has begun negotiations with unions about which factories could shut.

UK sees almost no car manufacturing in April

British car manufacturing came to a screeching halt in April, down 99.7% against the same month last year. It was the lowest output since the Second World War, according to the industry body, Society of Motor Manufacturers and Traders (SMMT).

Just 197 premium and luxury sports vehicles rolled off factory lines, with 45 of those sent to UK customers. Instead, some plants refocused to make 711,495 items of personal protective equipment for health workers.

“With the UK’s car plants mothballed in April, these figures aren’t surprising but they do highlight the tremendous challenge the industry faces, with revenues effectively slashed to zero last month,” said SMMT chief executive, Mike Hawes. The loss of 400,000 cars that would normally have been made is expected to cost the British car industry up to £12.5bn in revenues. In April there were 830 new car engines made at UK plants, 781 of which were exported. This level was down 99.5% on the year before.

France announces €8bn rescue plan for car industry

The French government has announced an €8bn (£7.1bn) rescue plan for its car industry, which has been severely impacted by the coronavirus pandemic.

President Emmanuel Macron's proposal includes €1bn to provide grants of up to €7,000 to encourage citizens to purchase electric vehicles.

It also puts money toward investments to make France a center for electric vehicle output. The plan comes as the industry braces for thousands of job cuts. In return for the relief, the two main French car producers Renault and PSA have promised to focus production in France.