Reports from the Canard Enchaîné (weekly newspaper in France), according to which the manufacturer plans to close four sites in France – including the emblematic Flins factory – as part of a vast savings plan, have sparked outcry even within the government.
“Flins must not close,” hammered Friday the Minister of Economy Bruno Le Maire on Europe 1 (French radio network). “We are now awaiting the global proposals of President Jean-Dominique Senard on his plan for the alliance (Renault-Nissan) and his plan for Renault.”
On Wednesday, before the Senate, Prime Minister Edouard Philippe had already insisted: “We will be extremely attached, even intransigent, to the preservation of sites in France.” Renault, with its Japanese allies Nissan and Mitsubishi, must announce on May 27 a strategic plan for the Franco-Japanese alliance, and the French group must then unveil on May 29 the outlines of a savings plan of 2 billion euros, announced in February.
“Long term strategy”
The auto group is going through a rough patch: after recording its first net loss in ten years in 2019, Renault has been further weakened by the coronavirus crisis which has paralyzed its factories and its network. Its European deliveries fell 79% in April.
Admittedly, the French State, Renault’s largest shareholder with 15% of the capital, has come to its rescue by guaranteeing a bank loan of around 5 billion euros, approved by the European Union. But it still has to be validated by Bruno Le Maire and a decree published in the Official Journal.
“This loan, I have not yet signed it,” insisted Mr. Le Maire in an interview with Le Figaro (French newspaper) published Thursday evening, warning that “Renault is playing its survival.” The acting director general of Renault, Clotilde Delbos, had indicated at the end of April that this loan did not call into question the plan of savings of Renault, nor possible layoffs, the only condition fixed by the government being the renunciation of dividends paid to shareholders this year.
The manufacturer did not comment on the information of the Canard Enchaîné. According to a source familiar with the matter, it would not be a question of closure of Flins plant but of stopping automobile production to devote the site to another activity.
The Flins plant in the Yvelines employs 2,600 people and assembles the city cars Zoe (electric) and the Nissan Micra. Three other smaller sites are also threatened according to the weekly (Choisy-le-Roi, Dieppe and the Brittany foundry in Caudan).
“What seems important to us is knowing what is Renault’s long-term strategy. How do they guarantee that tomorrow, electric vehicles will be located in France?” wondered Bruno Le Maire on Europe 1.
At the same time, its partner Nissan plans to cut thousands of additional jobs worldwide, the Japanese news agency Kyodo News said yesterday.
“Make commitments”
After having already announced last summer its intention to cut 12,500 jobs by March 2023, a new recovery plan would bring these cuts to 20,000 jobs, or 15% of the global workforce.
While the explosion of the pandemic threatens the global automotive industry, Paris is working on a support plan specific to the sector: this plan, awaited by the entire industry, will be announced next week by President Emmanuel Macron.
But counterparties are expected, warned Mr. Le Maire in Le Figaro: “We ask the manufacturers to make commitments in three directions: the electric vehicle, the respect of their subcontractors and the location in France.”
“All the aid we provide to businesses must be directed in these two directions: decarbonization of the French economy and improvement of its competitiveness,” he added.
According to the daily Les Echos (French newspaper), the government should arbitrate “this weekend” on possible aid for internal combustion vehicles in addition to the support shown for electric and hybrid cars.
