Wednesday, January 14, 2009

Renault says could cut jobs at Dacia in Romania

PARIS, Jan 14 (Reuters) - Dacia in Romania could axe up to 4,000 jobs if sales at the low-cost car maker don't recover sufficiently, its French owner Renault (RENA.PA) said.

Renault reacted to reports in Le Figaro and Les Echos newspapers on Wednesday, with Les Echos citing French newswire AFP referring to a meeting between staff and Dacia head Francois Fourmont.

A Renault spokeswoman said the figures cited in both papers were correct but would apply only in a "catastrophic scenario".

In addition, Renault denied it was preparing to raise around 3 billion euros ($4 billion), as reported by Le Figaro news paper, by issuing convertible bonds.

Citing a "well-informed" source, Le Figaro said the convertible bond issue would likely be open for Renault shareholders only -- Japanese carmaker Nissan (7201.T), which owns a 15 percent stake, and France, which owns 16 percent of the carmaker's share capital.

France is likely to announce measures to boost carmakers' capital at a meeting on Jan. 20 aimed at helping the country's battered auto industry, Economy Minister Christine Lagarde said on Tuesday.

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