Friday, June 18, 2021
News Renault Could Go Bust Without Financial Aid

Renault Could Go Bust Without Financial Aid

French finance minister says Renault may disappear without extra financial backing


  • Revenues fell 19% in Q1 of 2020.

  • Sales dropped 36% in the same period.

  • Renault is preparing a 2 billion euro cost-cutting plan.


This story is of interest on many levels. The French Finance Minister Bruno Le Maire did not mince words during an interview on Europe 1 radio on Friday: “Yes, Renault could disappear.” While the European Union has granted approval for a 5 billion euro loan for Renault, Le Maire has not yet signed off on the loan. While we never get political here on Motor Illustrated, we think the French Government’s requests in exchange for support are a good example to follow.

Le Maire, as reported by Automotive News Europe, is seeking commitments from automakers in exchange for the money. There are three specific areas: “electric vehicles; the fair treatment of sub-contractors; and that they base advanced technology activities in France.” Finally, the government also wants vehicle production to be relocated locally. All of these points seem fair and economically responsible.

Renault Talisman | Photo: Renault

Also part of the plan to cut costs may be chopping slow-selling models, as many manufacturers will likely be forced to do. The Renault Espace, a very popular minivan introduced in 1984 should be first to go, followed by the Scenic and the Talisman.

Datsun To Be Phased Out As Nissan Seeks To Cut $2.8 Billion in Costs

We reported only days ago about some of Nissan’s European plans and while they include many references to Renault, the opposite is not true. No matter however as Nissan is in the troves of cutting 20,000 jobs, most of them in Europe. This is a considerable increase over the 12,500 positions they’d previously intended to cut. These jobs will be the result of plant closures, the Barcelona plant for example, and Nissan pulling the plug on Datsun.

Nissan GT-R And 370Z May Need To Die In Europe For The Company To Survive

We’ll have to wait to see Renault Group Chairman Jean-Dominique Senard’s upcoming strategic plan expected on May 29th. It comes last after Nissan’s plan coming on the 28th. Both will be preceded by the Alliance’s own umbrella plan on the 27th.

Renault Scenic | Photo: Renault

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Matt St-Pierre
Matt St-Pierre
Trained as an Automotive Technician, Matt has two decades of automotive journalism under his belt. He’s done TV, radio, print and this thing called the internet. He’s an avid collector of many 4-wheeled things, all of them under 1,500 kg, holds a recently expired racing license and is a father of two. Life is beautiful. Send Matt an emai

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