France approves € 5 billion emergency loan for Renault, Auto News, ET Auto

[ad_1]
Finance Minister Bruno Le Maire approved the loan after a meeting with leaders, union representatives and local elected officials affected by an in-depth overhaul unveiled by Renault last week, the finance ministry said.

Paris the french government said on Tuesday it had signed a five billion euro ($ 5.6 billion) state-guaranteed loan for the automaker Renault, where the coronavirus crisis has compounded months of management turmoil and prompted the company to lay off nearly 15,000 people worldwide.

Minister of Finances Bruno the Mayor approved the loan after a meeting with leaders, union representatives and local elected officials affected by a major overhaul unveiled by Renault last week, the finance ministry said.

The government announced the loan last month, but said it was conditional on a Renault pledge to keep jobs and core businesses in France.

The company said four production sites in France could be closed or restructured, including the Maubeuge site in northern France, from where production of Kangoo electric utility vans is moved to nearby Douai.

This prompted thousands of people in the city to demonstrate over the weekend.

The Mayor “asked that discussions immediately begin with the trade unions on the implementation of a future industrial project (…) which should guarantee in the long term, beyond 2023, the employment and industrial operation of Maubeuge, “said the ministry.

“No decision will be taken on the relocation of activities unless it has been approved by all parties,” he said.

Renault has pledged to cut costs by two billion euros as it tries to regain its financial footing after sales in its core French market plunged 89% in April, reflecting plant closures and of concessions in the world.

President Emmanuel Macron also pledged an eight billion euro plan to revive the French auto industry by making it the European leader in electrics. cars, including subsidies for the purchase of new cars.

In February, Renault unveiled its first annual loss in a decade, after former chief executive Carlos Ghosn was arrested in Japan in 2018 for alleged financial misconduct at his partner. Nissan, where Ghosn was president.

Since his ouster, former Michelin boss Jean-Dominique Senard has taken over the presidency of Renault, and former Volkswagen boss Luca de Meo is expected to join the CEO position in July.

[ad_2]

About Chuck Keeton

Check Also

Youthentity Plans Second Year of Virtual Fundraising | New

While Youthentity’s 14th Annual Roast Pork Fundraiser will be held virtually again for the second …

Leave a Reply

Your email address will not be published.