According to French Finance Minister, Bruno Le Maire, Renault runs the risk of going out of business if it doesn’t get help in dealing with the fallout from the coronavirus pandemic.
During an interview on Europe 1 radio today, Le Maire said that Renault’s plant in Flins must not close and that the carmaker should try to save as many jobs as possible in its native land, while also remaining competitive.
“Yes, Renault could disappear,” said Le Maire, in what sounds like a very powerful statement given how big of a brand this is.
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The French carmaker is due to present details of a cost-cutting plan meant to save 2 billion euros ($2.2 billion) in expenses over the next two years. So far, its Q1 revenue fell 19 percent, with sales in Europe down 36 percent due to coronavirus lockdowns.
Among the solutions being considered is the closing of several small component plants in France, as well as the Alpine assembly site in Dieppe. Meanwhile, slow-selling nameplates could also get discontinued, such as the Espace minivan or the Talisman mid-size sedan.
“Renault is fighting for its survival,” added Le Maire in a separate interview. “I haven’t yet signed the loan,” he stated, referring to a 5 billion euro ($5.5 billion) bank loan, for which EU approval has already been granted, reports Autonews Europe.
He added that the French government was seeking commitments from carmakers in three key areas in return for financial aid, namely with regards to electric vehicles, the fair treatment of sub-contractors and that they base advanced technology activities in France.
Word has it that Renault has already reached an agreement on the loan with banks and that a proposal should be submitted to the board of directors soon.
