Multinational car manufacturer, Renault, has announced that it will be cutting its third shift as a direct result of the 'consistent downward trend in the European market'.

In a statement issued to the press, the company states that it has no choice but to 'adapt manufacturing levels to market demand' as all European carmakers have had to do.

The removal of the third shift at the Palencia plant, where the new Mégane is being produced, will take effect from the middle of March and will directly affect some 400 employees.

In reaction to the news, José Antonio de Santiago-Juárez, spokesperson for the regional government in Castilla and León, said that Renault's situation was not a localized problem, but rather an indicator of the state of the automotive industry as a whole.

The company will meet with representatives of the automotive trade unions next week to thrash out the details of these job cuts.