Breaking News —
Next week the automobile alliance must present its strategy to get out of the economic crisis generated by the covid-19 pandemic.
France raises the alarm about the economic status of the country’s iconic automotive company. Finance Minister Bruno Le Maire said state support is essential for Renault to stay afloat. “Yes, Renault could disappear,” he told Radio Europa 1.
The French government, the largest shareholder of Renault with 15% of the capital, agreed to help the car company with a loan of € 5 billion, which has already been approved by the European Union. However, this endorsement has yet to be validated by the French Finance Minister, who has not yet signed it.
The Renault company must present its new strategic plan next week and has already estimated the necessary savings at 2,000 million euros. This plan would include the closure of three factories in France, as well as a conversion of the emblematic industrial facility in Flins, north of Paris.
In this regard, Bruno Le Maire commented that the Flins plant should not close and that the company must be able to maintain as many jobs as possible in France. Furthermore, the official stressed that Renault must adapt and be competitive, underscoring the need for a transition towards the production of “greener” vehicles.
Cuts at Nissan
On the other hand, the Kyodo news agency reported that the Japanese company Nissan, which has been in alliance with Renault for the last decades, could cut 20,000 jobs, mainly in Europe and in countries with emerging economies. Meanwhile, . sources say the Japanese automaker would cut one million cars from its annual sales target.
In addition to the economic crisis due to the coronavirus pandemic, Renault and Nissan were hit by the consequences of the scandal involving their former President Carlos Ghosn, who in December 2019 fled Japan, where he had to be tried for alleged financial misconduct. This week in the USA Two men who allegedly helped him escape justice were arrested.