What will become of Renault? The question is more topical than ever when the Minister of the Economy said in an interview with Le Figaro published Thursday evening that the company "plays its survival".
Support plan announced next week
To obtain state aid, car manufacturers must commit themselves "in three directions: the electric vehicle, the respect of their subcontractors and the location in France of their most technologically advanced activities", detailed the minister. The support plan for the automobile industry will be announced next week by the President of the Republic. The French government, Renault's largest shareholder with 15% of the capital, has agreed to come to its aid by guaranteeing a bank loan of around 5 billion euros, which has been approved by the European Union. But it still has to be validated by Bruno Le Maire and a decree published in the Official Journal.
With the health crisis linked to the coronavirus, Renault finds itself in a very bad patch, having seen its factories and its commercial network paralyzed. To this, we must add a request that is no longer there. The new vehicle market fell by 76.3% in April in Europe. Above all, the diamond group was already weakened before this episode, having suffered in 2019 its first net loss in ten years.
Savings required amount to 2 billion euros
The group must present Friday, May 29 its new strategic plan, and has already estimated the necessary savings at 2 billion euros. This plan could include the closure of three medium-sized factories in France, as well as a reconversion of the emblematic industrial installation of Flins (Yvelines), according to the Canard Enchaîné . If the builder did not comment on this information, it sparked outcry, Prime Minister Édouard Philippe warned Wednesday that the government would be "uncompromising" on the preservation of the sites.
Inaugurated in 1952, the Flins-sur-Seine factory has 2,600 employees. The concern also concerns three other Renault sites. The Choisy-le-Roi (Val-de-Marne) factory employs 263 people in the repair of engines and gearboxes used as re-use parts. That of Dieppe (Seine-Maritime) has 386 employees and assembles the Alpine A110 sports model. Finally, the Brittany foundry in Caudan (Morbihan), produces cast iron parts for engines, chassis and gearboxes, with 385 employees.
Society
Two men suspected of helping Carlos Ghosn flee Japan have been arrested
Society
Big French bosses plead for a “green” revival
- Automobile
- Renault
- Economy
- Coronavirus
- Bruno Le Maire