Renault has to forego dividends in order to receive the state-guaranteed loan of up to five billion euros.
The financially struggling car manufacturer Renault has to pay back up to five billion euros for its state-guaranteed loan. This includes the waiver of a dividend this year, interim chief Clotilde Delbos said on Friday at the general meeting in Boulogne-Billancourt near Paris.
Delbos said the terms also include that suppliers are paid properly. Subsidiaries in tax havens are taboo. In addition, Renault had to promise not to request the shifting of European limit values for CO2 emissions from vehicles. The group had “no problem at all” to meet the conditions, said the top manager. Renault has not yet used a group of banks’ credit.
Renault announced last month that it would cut around 15,000 jobs in a socially responsible manner in order to emerge from the crisis. The carmaker wants to reduce its excess capacity in order to become more profitable again. Renault President Jean-Dominique Senard said talks with the social partners had started. Due to the corona-related health situation, the shareholders’ meeting only took place in a small group.
The new General Manager Luca de Meo, who comes from Italy, was confident that the crisis-ridden manufacturer could turn around. However, he asked for some time. “The savings plan announced last month is the first important step for Renault’s restructuring,” said the former Seat CEO, who will start his new job in France on July 1. A strategic plan for the further development of the group is expected from him.
Renault is considered a difficult company in France. The manufacturer holds a 43.4 percent stake in the Japanese alliance partner Nissan, which is now writing deep red numbers. The French state owns 15 percent of Renault and he has a say in Boulogne-Billancourt.