France seeks to shore up its auto industry after the crisis caused by the worldwide COVID-19 pandemic by making an emergency loan to Renault
Renault seeks to get ahead of the damages that the brand has suffered due to the closure of its factories during the pandemic, for which it has announced a plan to reduce spending by 2,000 million euros, which could include the factory closings and the removal of old models.
To mitigate the blow to the automaker, the Government of France has authorized a € 5 billion loan for Renault, which belongs to 15% of the French State, and who registered losses of more than 5,000 million euros during the first quarter of 2020; a 19.2% drop in its turnover compared to the same period of the previous year.
According to the portal Motorpasión, France will announce in a few days its plan to promote the purchase of cars and the transition to a more sustainable model.
“That means supporting clean vehicle purchases. We need to use this crisis as a lever to accelerate the transition in our environment and encourage the French to buy cars that are still too expensive today, “said the French Minister of Economy and Finance, Bruno Le Maire.
Meanwhile, on May 27, the alliance Nissan-Renault-Mitsubishi It will announce a joint medium-term plan to face the crisis in the sector and probably reorganize the production system in the alliance, although each will make its own plan public.
This plan would imply reducing production capacity by 20% and reducing spending by 2,000 million euros by 2022, which could result in the closure of factories nationwide.
The Slovenian factory of Renault It will also suffer a significant cut, as the firm plans to cut about 400 of the 3,200 jobs.
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