Renault’s two-year dismal year, 2019’s worst performance in a decade, and the new crown virus in the spring, is really worse, and now even the French finance minister has come forward. French Finance Minister Bruno Le Maire said: “Renault is in serious financial difficulties, if not quickly access to financial assistance to deal with the outbreak of new coronapneumonia, the company may soon go bankrupt.” “
The outbreak is understood to have hit Renault particularly hard, with 12 renault plants in France, including its flagship plant north of Paris, shut down in mid-March.
“The Flinders plant cannot be closed, which is the position of the French government and the state-owned shareholders,” the French finance minister said. “
Earlier, Bruno Le Maire had said that the European Union had authorised a loan application from Renault, but that he had not yet signed the 5 billion euro ($38.8 billion) loan deal, which would provide Renault with a plan to maintain its cash flow stability and that the government was in talks with Renault about the issue.
He added that in return for funding during the new coronapneumonia outbreak, the French government wants car companies to make commitments in developing their electric vehicle business, treating distributors fairly, and locating technology research and development centers in France. In addition, the French government has asked car companies to move vehicle production back to the French mainland.
Renault is understood to be planning to announce specific strategies on May 29th, including further reducing production costs. Nissan, an ally of Renault, also plans to unveil new plans in the near future, potentially cutting another 20,000 jobs.