Cac 40 slides as Renault proposes 7,500 French job cuts

<p>The Cac 40 has lost ground after Renault announced it will be making job cuts in France.</p>

The benchmark Cac 40 index has lost ground in trading today as the index is dragged lower by falling Renault shares.

This nosedive follows the French carmaker's announcement that it aims to cut 7,500 jobs in its home country by 2016 in a bid to boost its competitiveness and offset the slowdown in European markets – which has shown no signs of abating as yet.

Head of the manufacturer's French operations Gerard Leclerq commented: "If an agreement is signed with unions, this staff redeployment would require neither a plant closure or a voluntary redundancy programme."

Renault is pushing employees to accept a new nationwide deal on pay and working conditions in order to cut costs and align the company's productivity with cheaper European facilities such as its Spanish Palencia plant and partner Nissan's Sunderland factory in the UK.

At 09:30 GMT, the Cac 40 fell by 0.2 per cent to 3687.5 points, while Renault shares fell by 1.7 per cent to €40.87 per unit.

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