Renault plays its survival, according to Bruno Le Maire - The Point

" Renault plays its survival ". Bruno The Mayor does not mince his words when he talks about the future of the French car manufacturer hit by the economic cri

Renault plays its survival, according to Bruno Le Maire - The Point

" Renault plays its survival ". Bruno The Mayor does not mince his words when he talks about the future of the French car manufacturer hit by the economic crisis linked to the sars coronavirus. The minister of Economy considers that the company should undertake the maintenance in France of certain activities, in an interview given to the Figaro. It also insists on the fact that he has not yet given its green light to a loan of 5 billion euros to the manufacturer in distress.

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"This loan, I have not signed yet," explained the minister of Economy, asking the automakers to engage on three points, including " the location in France of their activities in technologically more advanced ". Renault, flagship French industrial group, is in a very bad situation, having seen its factories and its commercial network paralyzed by the crisis of the sars coronavirus and containment determined in particular in Europe, which have reduced the market of the nine 76.3 % in April on the Old continent. The group at the diamond was already compromised before this episode, having suffered in 2019, its first net loss in ten years.

The ready waiting for validation

The French State, main shareholder of Renault, with 15 % of the share capital, has agreed to fly to his rescue by guaranteeing a bank loan of approximately 5 billion euros, which was approved by the european Union. But it still has to be validated by Bruno Le Maire, and a decree published in the Official Journal. The panel is expected to present Friday, may 29 its new strategic plan, and has already encrypted the necessary savings to 2 billion euros. This plan could include the closure of three plants of average size in France, as well as a reconversion of the industrial facility's iconic Flins (Yvelines), according to le Canard Enchaîné, and a source close to the folder.

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If the constructor has not commented on this information, they have also raised an outcry, the Prime minister Edouard Philippe warning on Wednesday that the government would be "intransigent" on the preservation of the sites. "We are continuing our discussions in the framework of the support plan to the automotive industry," said Bruno Le Maire, on Thursday evening, revealing that the plan, expected by the sector as a whole, would be announced next week by the president of the Republic.

the Three commitments expected

In this context, " we ask the manufacturers to make commitments in three directions : the electric vehicle, the compliance of their subcontractors and the location in France of their activities which is technologically the most advanced ", has detailed the minister. "All the aid that we provide to businesses should be oriented in these two directions: the décarbonation of the French economy and the improvement of its competitiveness ", he continued.

The automotive sector weighs heavily in France 400 000 jobs direct industrial, 900, 000 with services. Inaugurated in 1952, the factory of Flins-sur-Seine has seen a twenty iconic models of the brand, including the Dauphine, the R4 and the R5. Most recently, she assembled the citadines Zoe (electric) and Micra (partner of Nissan) with 2 600 employees. The site has produced in the last year 160 000 vehicles including the Renault Clio, a model that is now fully relocated to Turkey.

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in Addition to Flins, the concern is also three other sites of Renault, the smaller, threatened, according to le Canard Enchaîné. The factory of Choisy-le-Roi (Val-de-Marne) employs 263 people in the repair of engines and gear boxes used as parts of re-employment. That of Dieppe (Seine-Maritime) has a total of 386 employees and assembles the sports model, the Alpine A110, a sports coupe with ambitions for top of the range sold very little. The production rate had been reduced to 7 vehicles per day in the beginning of the year. Finally, the foundry of Britain in Caudan (Morbihan), produces cast iron components for engines, chassis and gearboxes, with 385 employees.

Updated Date: 21 May 2020, 19:33

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