Renault workers to protest about importing Latitude sedan

Renault employees in France are looking to organise a demonstration against Renault�s imported new mid-sized Latitude sedan. The Latitude is manufactured in South Korea.

According to French media, the French GTC union is arranging to �bus in� factory workers to the Paris motor show, where the Latitude will premier. Unions at PSA Peugeot-Citro�n are believed to be anxious at more home-brand production being sourced abroad. Renault is also facing resistance from its own Government, which owns 15% of Renault, on introducing international built models.

The Latitude sedan underpins the Samsung SM5; itself based on the Laguna platform and will not be sold in the UK. Renault is eager to keep its footing in Europe�s D-Segment, predominantly because of slow sales of the current Laguna.

Reports quote French industry minister Christian Estrosi saying �he would be keeping a close watch� on the Latitude project because Renault promised the import volumes would remain �marginal�.

The French Government, which has two representatives on the Renault�s board, has a record of leaning on domestic manufacturers to encourage them to purchase more components locally and to guarantee domestic production.

Renault�s existence in the large car market within Europe has been dwindling for several years. The mature Espace MPV has been outsold by the younger Ford S-Max, the aging, upscale Vel Satis sedan is a virtual failure and Renault has roughly sold 90,000 Lagunas last year, half of the company�s projected sales plan.

Figures from JD Power propose that Renault currently holds 3.4% of the European large car market, down from 7.5% in 2003. Renault has still not declared its plans for replacing the Espace and Laguna, despite confirming the factory that makes them will gradually shift to van production.