All manufacturers are experiencing painful sales slumps caused by the coronavirus pandemic. At Renault, coping with the crisis is turning into a struggle for survival, as economics and finance minister Bruno Le Maire said on Friday in an interview with his colleagues at “Le Figaro”.
The politician also confirmed that the group had applied for a state-guaranteed five billion euro loan that it has not yet approved. First you want to see how Renault responds to the crisis. In concrete terms, the government is calling for commitments in three areas.
“When it comes to electric vehicles, respect for suppliers and localizing the most technologically advanced activities in France,” Le Maire enumerated. On Friday morning, the minister told Europe 1 Radio that there was an urgent need for action and that they wanted to know what the automaker’s strategy was.
In doing so, Le Marie made it clear that the government would not consider the closure of the large Renault factory in Flint in the Paris area. The French government and Nissan are the largest Renault shareholders, each with 15 percent. The company had already had a turbulent time before the corona crisis; the scandal surrounding the former CEO Carlos Ghosn had already affected the company.
Le Marie clearly warned that Renault could not survive the crisis. At the same time, he was confident and explained that, in his opinion, the company could and will get back on its feet once the strategy had been determined. This should be to make Renault the most technologically advanced manufacturer in the world.
For the French Formula 1 project, the financial imbalance of the car manufacturer is not good news. Expenditure on the premier class will be difficult to justify if the government has to invest billions to save it – especially since success on the route is a long time coming.
Last year, they ended up in fifth place on the World Championship standings behind McLaren. After this year, the team also loses its highly endowed Daniel Ricciardo to the competition from Woking.
Renault plans to present the savings plans next Friday (May 29). Then it will be shown whether the Formula 1 project will continue.