The French automaker has secured a billion dollar loan with a state guarantee. The shareholders celebrate this agreement.
The financially struggling car maker Renault has agreed a government guaranteed loan of up to five billion euros with banks. The loan amount could be used in whole or in part, Renault announced on Wednesday in Boulogne-Billancourt. The French state guarantees 90 percent of the loan. The French automaker’s shares soared in early trading by up to 9.2 percent.
The loan has been debated for some time. Economics and finance minister Bruno Le Maire only signaled on Tuesday to approve the guarantee. Renault wants to cut around 15,000 jobs worldwide and implement billions in cost reductions to come out of the corona crisis.
Le Maire had also agreed with representatives of Renault, the unions and representatives of the people that a future plan for the large Renault plant in Maubeuge in northern France is being negotiated. President Emmanuel Macron exerted pressure and demanded commitments to the Maubeuge and Douai plants in northern France as a condition for the billion dollar loan. According to Renault, these two factories are to become a center for electric cars and light commercial vehicles. The state is an important player at Renault with a share of 15 percent.
