Home Auto France gives credit guarantee of € 5,000 million for Renault

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France gives credit guarantee of € 5,000 million for Renault

by ace
France gives credit guarantee of € 5,000 million for Renault

The French Economy Minister on Tuesday authorized a state-backed credit of € 5,000 million to Renault, which the government had conditioned on negotiations with the unions on staff cuts and closure.

The credit had been announced at the beginning of the crisis caused by the Covid-19 pandemic to help the group get through this difficult period, but the executive placed conditions on the restructuring announced by the company.

Sources from the Ministry of Economy cited by the agencies EFE and AFP indicated that Bruno Le Maire should sign this Tuesday afternoon the guarantee of the State to the credit, after having asked to guarantee the long-term employment, beyond 2023, in Renault plant in Maubeuge, in the north of the country.

Le Maire received representatives of the unions of that factory and the president of Renault, Jean-Dominique Senard this Tuesday. After the meeting, he assured that the guarantee will advance.

The ministry indicated that the negotiations guarantee employment and the level of industrial activity at the Maubeuge plant, after Renault initially considered withdrawing production of the electric version of the Kangoo model from that location, moving it to the Douai plant, at 70 kilometers.

"There will be no decision on the transfer of activity without a future project agreed with the different parties," said the ministry, quoted by EFE.

As of next week, negotiations will begin between management and workers' representatives and a review of this dialogue will take place in September.

Renault announced last Friday a plan to save about 2 billion euros a year, with a reduction of about 15,000 jobs worldwide, 4,600 of which in France.

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