France admits that Renault “may disappear”

23/05/2020

France admits that Renault "may disappear"

Its market value falls 2.86%

The Economy Minister, Bruno Le Maire, conditions a loan with state guarantees amounting to € 5 billion to “commitments” in the electric vehicle, the respect of the auxiliary companies, and the location in France of their most advanced technological activities.

The French economy minister, Bruno Le Maire, admits the serious situation that the car company Renault is experiencing due to the coronavirus crisis, since “survival is at stake” and “may disappear”. In interviews with ‘Le Figaro’ and radio ‘Europe1’, he acknowledges that the automobile group intends to apply for a loan with state guarantees amounting to € 5 billion, which has not yet been signed.

In order to carry out this transaction, the French Government demands “commitments” on the electric vehicle, the respect of the auxiliary companies, and the location in France of its most advanced technological activities.

The words of the Minister of Economy caused Renault shares to lose 2.86% of their value on the Stock Exchange, up to € 17.2.

These Le Maire statements come a few days after it became known that Renault would be planning to close three factories located in France as part of its restructuring to deal with the Covid-19 crisis: Dieppe, Les Fonderies de Bretagne and Chiosy-le -Roi, where more than a thousand people work.

Meanwhile, his Flins plant could stop producing cars and be used for other tasks, such as prototyping. Some 2,600 people work there, not counting the storms. Le Maire believes that “Flins should not close.”

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