The future of the Fonderie de Bretagne (FDB), located in Caudan, Morbihan, hangs by a thread as Renault has abruptly withdrawn its support for the once-promising foundry. With 300 employees directly impacted, the company is now facing potential insolvency following Renault's refusal to guarantee future orders on December 20, 2024.
FDB, which specializes in producing cast iron parts for vehicle suspensions and exhaust systems, has struggled to diversify its operations since its acquisition by the German investment fund Callista Private Equity in 2022. Initially deemed promising, this transition became problematic when it became evident the new ownership lacked both the technical means and financial support to secure new markets. According to FDB’s management, efforts to bolster their client base included reaching out to sectors such as agriculture, railways, and public utilities, leading to new partnerships and contracts. Unfortunately, during the height of these initiatives, the company continued to rely heavily on Renault, which accounted for 95% of its revenue.
“We refuse to let Fonderie de Bretagne add to the list of automotive subcontractors forced to shut down due to Renault's decisions,” the CFE-CGC union representatives proclaimed, reflecting the palpable anger among the workforce. They had rallied advocates and regional politicians to demand a reconsideration of Renault's strategy, emphasizing the broader ramifications on the industrial base of France.
Renault's decision came as executives departed for the holiday break, seemingly unaware of the chaos their withdrawal would precipitate. FDB’s director, Jérôme Dupont, explained post-holiday, “With the little visibility we have on the future, we will seek a buyer with, if possible, recovery at the court.” The company began putting employees on part-time work as it struggled to maintain financial stability, fearing they could soon face appointment of judicial recovery procedures.
Currently, the Fonderie has placed around 200 employees on partial employment, stating, “The issue is to preserve the company's treasury.” This indicates the precarious state of affairs moving forward. The majority of the workforce now finds themselves uncertain about their futures, as extensive negotiations with various stakeholders have led to disconnects and disappointments.
Employers at FDB noted their frustration with Renault's lack of commitment. Despite months of discussions meant to secure orders through 2028, those talks collapsed, leaving the foundry at risk of severe operational disruptions. Just before Christmas, the automobile manufacturer invested significant resources elsewhere, with reports indicating they preferred to shift production to cheaper labor markets abroad.
“The state has leverage to compel Renault to adapt a more ‘made-in-France’ approach, especially as they heavily benefit from public subsidies,” commented several political figures from the region, including Loïg Chesnais-Girard, the current president of the Bretagne region. The involvement of the government has become increasingly necessary as they navigate the fallout from this corporate decision.
The French government, which previously supported Renault with substantial bailouts including guarantees worth several billion euros during the pandemic, faces increasing scrutiny. Politicians are calling for intervention to safeguard local jobs and secure the foundry's future. A letter sent to President Emmanuel Macron by Dupont and union representatives demanded immediate action: “We call for urgent intervention from the state to make Renault abide by the rules of ‘made-in-France.’”
The potential closure of FDB would not only devastate the workforce directly but could also signify the larger trend of industrial outsourcing and the decline of the French manufacturing sector. Union leaders contend this trend reflects systemic issues where large companies prioritize profit over local employment.
The disastrous outcome for FDB symbolizes the challenges faced by many industrial entities across France, where past glories seem overshadowed by harsh modern market realities. Local politicians and the community recognize the historical significance of the foundry; it has been part of the local economy for decades.
Jérôme Dupont, reflecting on the situation, concluded, “The mobilization of employees shows there is still hope for this industry. With determination, we can reshape this narrative.” While optimism remains, the future of Fonderie de Bretagne continues to look bleak without swift action from Renault or decisive government intervention.