Friday, June 5, 2020
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

Trending Now

2021 Toyota Venza vs 2020 Honda Passport Spec Comparison

Two SUVs, same product planning approach, very different vehicles. The Honda wants to be your SUV; the Venza wants to be your vehicle. ...

Walmart Is Closing Its Tire, Lube, and Express Car Repair shops in Canada

Walmart's 106 Tire, Lube, and Express stores closing across Canada Mr.Lube partnerships will continue in some stores Walmart is moving away from automotive, or...

Audi Looking To Fast-Forward Development On A Highly Efficient EV Through The “Artemis” Project

First car to launch expected in 2024. Audi wants to take the EV lead in the Volkswagen Auto Group. VAG plans to launch...

Next Nissan Z Car Production Could Start September 2021

Upcoming Nissan Z could be called Nissan 400Z Production could begin in late 2021 New Nissan Z part of a full lineup of...

Fighting to Survive In Tough Times: Aston Martin Cuts 500 Jobs And Spending

Aston Martin has lost £120 million so far this year. Last year was no better with a reported £104 million loss. New owner...
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 1,400 kg, holds a recently expired racing license and is a father of two. Life is beautiful. Send Matt an emai

LEAVE A REPLY

Please enter your comment!
Please enter your name here

This site uses Akismet to reduce spam. Learn how your comment data is processed.