France – Le Maire: “The Renault is a risk to survival,”

“The Renault is playing a decisive game for its survival”. The alarm was launched, between yesterday and this morning, the French finance minister, Bruno Le Maire, in which the Home of the Lozenge is currently in “serious financial difficulties” and therefore may “disappear”.

The situation. Le Maire, in his role as a regent of the ministry of Bercy, is directly involved in the destinies of the manufacturer of Boulogne-Billancourt, france: the French State is the majority shareholder, with 15% of the capital, and has already given his consent to the provision of state guarantees on a bank loan 5 billion euros. Currently, the Renault, after an agreement was reached with certain banks and obtained the go-ahead from Brussels, is waiting for you to complete the authorization process to submit the transaction to the signature of the minister. The loan is to be functional to put in a security finance company put and test not only by the crisis due to the coronavirus. The Renault has closed the 2019 with the first loss of the budget of the last 10 years and in the first quarter, thanks to the closure of the factories and the simultaneous collapse in demand, has burned cash at a rate not dissimilar from that suffered by the majority of the competition: in this context, and in view of the possible recourse to state support, the board of directors has decided to cancel the dividends, to cut the remuneration of the management and put into question the preservation of the production facilities in France (“we have No taboos and do not exclude anything,” said the interim chief executive officer Clotilde Delbos).

The conditions of the State. Le Maire did, however, understand how his signature on the loan is tied to precise conditions to be fulfilled, starting from the maintenance of the activities “most technologically advanced” for the whole of the French borders. It seems, however, that the State wants to advance too many claims in view of the difficult situation. In the last few days have emerged to rumors on the upcoming business plan of Renault, which will be presented may 29 and will include the aim of cutting costs by at least € 2 billion through a series of rationalization initiatives, including the closure of the plant components of Choisy-le-Roi (in the suburbs of Paris) and Caudan (Brittany), of the establishment of the brand Alpine in Dieppe (upper Normandy) and of the factory of Flins. To worry about is the fate not so much of the three smaller facilities, since the use of the site at the gates of Paris, that has made the history of automotive production across the alps. Initially, there seemed to emerge the opposition to the point that the government had come to the statements almost of resignation (“If we make policy in the next two years the Renault will no longer exist”). However, the premier, Édouard Philippe warned Wednesday that the government does not intend to accept “compromises” on the protection of the websites. “What counts for us,” he added, Le Maire, is that the Renault, to create value. Renault should have the opportunity to adapt their systems of production” otherwise “be at risk” his future and its competitiveness, but “employees should not become a variable in this adjustment”. “Flins must not close: it is the position of the government, the shareholder of the state”, he then made it clear to the minister.

The Covenant to the floor of the Store. One of the conditions for the granting of state guarantees is represented by the need for the executive to have more information on the plans of both the group and of the alliance with Nissan, this last days the subject of rumors concerning a heavy restructuring program (the latest coming from japan, they speak of cutting 20 thousand jobs, mostly in Europe and emerging Countries). Of the rest, The Maire has not made any secret of wanting to find out the impact of the new plan on the “industrial sites, on electrification, and on suppliers”. The strategies of the Renault should also take into account the program that the president Emmanuel Macron intends to present next week to sustain and revive an industry which gives employment, directly and indirectly, to over 1.2 million of the French. “All the aid that we provide to the companies should go in the direction of the decarbonization of the French economy and of the improvement of the general competitiveness,” explained Le Maire. “We ask the producers to take on commitments in three areas: electric vehicles, located in France of their activities on the most technologically advanced, and compared with the suppliers. On this last point, the minister has asked the Renault and the PSA group more “solidarity”: “We need to stop asking the supplier to transfer its production to eastern Europe or further afield to earn a penny.” Of the rest, the minister is not new to appeal to the two Houses to return to activity in France in exchange for aid and asking for a greater commitment on the cars to low emissions. On this last front is the party invitation to the vertices of Boulogne-Bullancourt to join the consortium for the production of batteries composed of PSA and the Saft of the oil company Total.

Source: Quattroruote.en – Edited by Anthon K.