Paris (AFP)

State aid to Renault subject to conditions? The government has hardened the tone against the carmaker in distress, demanding guarantees on the maintenance of its activity in France and recalling that it had not yet given the green light to a loan of 5 billion euros crucial for its survival.

Reports from the Canard Enchaîné, according to which the manufacturer would consider closing four sites in France - including the emblematic Flins factory - as part of a vast savings plan, sparked outcry even within the government .

"Flins must not close," hammered Friday the Minister of Economy Bruno Le Maire on Europe 1. "We are now awaiting the global proposals of President Jean-Dominique Senard on his plan for the alliance (Renault-Nissan) and his plan for Renault ".

On Wednesday, before the Senate, Prime Minister Edouard Philippe had already insisted: "We will be extremely attached, even intransigent, to the preservation of sites in France". And to observe: if Renault "is a global company", "its French brand is obvious".

Renault, with its Japanese allies Nissan and Mitsubishi, must announce on May 27 a strategic plan for the Franco-Japanese alliance, and the French group must then unveil on May 29 the outlines of a savings plan of 2 billion euros, announced in February.

The diamond group is going through a rough patch: after recording its first net loss in ten years in 2019, Renault has been further weakened by the coronavirus crisis which has paralyzed its factories and its network. Its European deliveries fell 79% in April.

- "Long term strategy" -

Admittedly, the French State, Renault's largest shareholder with 15% of the capital, has come to its rescue by guaranteeing a bank loan of around 5 billion euros, approved by the European Union. But it still has to be validated by Bruno Le Maire and a decree published in the Official Journal.

"This loan, I have not yet signed it," insisted Mr. Le Maire in an interview with Le Figaro published Thursday evening, warning that "Renault is playing its survival".

The acting general manager of Renault Clotilde Delbos had indicated at the end of April that this loan did not call into question the plan of savings of Renault, nor of possible reductions of jobs, the only condition fixed by the government being the renunciation of dividends paid to shareholders this year.

The manufacturer did not comment on the information of the Canard Enchaîné. According to a source familiar with the matter, it would not be a question of Flins of a closure but of stopping automobile production to devote the site to another activity.

The Flins factory in the Yvelines employs 2,600 people and assembles the city cars Zoé (electric) and the Micra from Nissan. Three other smaller sites are also threatened according to the weekly (Choisy-le-Roi, Dieppe and the Brittany foundry in Caudan).

"What seems important to us is knowing what is Renault's long-term strategy. (...) How do they guarantee that tomorrow, electric vehicles will be located in France?", S Bruno Le Maire is asked about Europe 1.

- Technologies in France -

At the same time, its partner Nissan plans to cut several thousand additional job cuts worldwide, Japanese news agency Kyodo News said on Friday.

After having already announced last summer its intention to cut 12,500 jobs by March 2023, a new recovery plan would bring these cuts to 20,000 jobs, or 15% of the global workforce.

While the explosion of the pandemic threatens the global automotive industry, Paris is working on a support plan specific to the sector: this plan, awaited by the entire industry, will be announced next week by President Emmanuel Macron.

But counterparties are expected, warned Mr. Le Maire in Le Figaro: "We ask the manufacturers to make commitments in three directions: the electric vehicle, the respect of their subcontractors and the location in France of their technologically more advanced. "

"All the aid we provide to companies must be directed in these two directions: decarbonization of the French economy and improvement of its competitiveness," he added.

According to the daily Les Echos, the government should arbitrate "this weekend" on possible aid for thermal vehicles in addition to the support shown for electric and hybrid cars.

© 2020 AFP