Renault is likely to be able to provide EUR 5 billion in state aid in the form of a loan, but the French automaker will have to sign a number of conditions. For example, commitments in the field of electric car production and supplier relationships need to be made and hi-tech activities should be concentrated in France.
That’s what French Finance Minister Bruno Le Maire said in an interview with Le Figaro. Renault is still an independent company, but it works closely with the Japanese Nissan in an alliance.
Toys for state aid exchange
According to Le Maire, talks with Renault on state aid are still ongoing. “Renault is fighting for its existence, but I had not yet signed the loan.”
France is allocating some € 450 billion in total to help the country through the worst economic crisis since the war; it concerns direct aid and loans. The French economy is expected to contract by at least 8 percent this year and the budget deficit to reach 9 percent.
Last week it came out that the cuts within the Renault-Nissan partnership mean the end for Renault Espace.