The corona crisis apparently plunged the already tumbling car manufacturer Renault into an existential crisis. According to France’s Economics and Finance Minister, everything is now at stake. But he sees opportunities for the group.
France’s Economics and Finance Minister Bruno Le Maire sees the automaker Renault in a serious crisis. “Renault is struggling to survive,” Le Maire told Le Figaro on Friday. The group has applied for a state-guaranteed loan of five billion euros, the minister said. “I haven’t signed this loan yet.”
Le Maire said the government is asking Renault to “make commitments in three areas: electric vehicles, respect for their suppliers, and localization of their most technologically advanced activities in France.”
The minister also emphasized that Renault’s large Flins factory in the Paris area should not be closed. “This is the government and state’s position as a shareholder,” Le Maire told Europe 1 broadcaster. The Renault Chairman’s proposals are now awaited.
“Renault can disappear”
“There is an urgent need for action,” Le Maire warned. “Renault can disappear, the big industrial manufacturers can disappear.” He never concealed the seriousness of the crisis and did not conceal the seriousness of Renault’s situation, the minister said.
However, he also knew that Renault had exceptional resources, exceptional technologies, motivated employees and a skilled workforce. In his opinion, the company can and will get back on its feet if it defines a strategy. Le Maire sees it as the right strategy to make the company one of the most technologically advanced manufacturers in the world, which is at the forefront of electric vehicles.
After the scandal surrounding the former CEO Carlos Ghosn, the manufacturer was in turmoil. The corona pandemic and the related slump in sales led to the worsening crisis. Generally speaking, Le Maire said to “Le Figaro”: “I have no qualms about saving our companies. What other solution is there? To face hundreds of thousands of layoffs and bankruptcies? That would have been fatal to our economy.”