- Renault, which is ready for a 5 billion euro state mortgage to beat the disaster, ought to announce subsequent week a financial savings plan which might contain the closure of websites in France, in keeping with The chained Duck.
- Bruno Le Maire mentioned he was ready for compensation from the corporate earlier than authorizing the mortgage, which the state will assure 100%.
- Like your complete automotive sector, Renault is ready to listen to in regards to the measures proposed by the state to avoid wasting the sector.
The years go by, the Coronavirus upsets the principles somewhat, however in the long run, the French vehicle business and the State play this little sport with their eyes closed, since they comprehend it by coronary heart. On the one hand an organization that desires to reap the benefits of a significant disaster to restructure its workforce within the territory the place manufacturing prices it probably the most, on the opposite a authorities which storms all the stronger that he has his hand on the set off tail of the revolver. 5 billion 90% assured to persuade reluctant banks to avoid wasting a soldier who’s already in very unhealthy form.
– Europe 1 🎧🌍📻 (@ Europe1) May 22, 2020
After Edouard Philippe the day earlier than, it’s Bruno Le Maire who acquired upset this Friday within the Figaro after studying about Renault's needs
to make the skin at four French sites (Choisy-le-Roi, Dieppe, the Brittany foundry at Caudan, and particularly the emblematic Flins) in addition to to a number of thousand staff, in keeping with the primary echoes, of the drastic financial system plan which should be introduced by the French producer on Could 29. 20 minutes summarizes the challenges of the showdown with the economist Flavien Neuvy, director of the Cetelem automotive observatory
Can Renault go bankrupt?
"Renault is taking part in its survival", within the phrases of Bruno Le Maire. Like different sectors of the financial system, the auto business has taken a tsunami within the face due to the pandemic. 70% fewer registrations in April in comparison with 2019, and 5 billion euros of money already evaporated to garot the affected person. Catastrophic figures who are following a year 2019 already not very folichonne with a internet lack of 140 million euros and a three.four% drop in gross sales. Even when the group guarantees that it doesn’t foresee plans of layoffs in its containers, it clearly goals to cut back the sails to outlive a yr 2020 already misplaced. Certainly, it’s exhausting to see the French dashing to purchase new automobiles this summer season when most are simply hoping to have a job once more in September.
🗣 François Lenglet on the disaster skilled by #Renault : "The economic device is not sized in any respect for the market (…) There’s appreciable overcapacity, these factories produce at 30 or 40% of their capability."
– Audrey & Co (@AudreyAndCoLCI) May 22, 2020
Flavien Neuvy's opinion : "You must know why maintain it. The truth that the State is a shareholder (as much as 15%) is a vital issue within the sustainability of Renault. We aren’t speaking about any firm in France.
It’s a very strong brand with a strong history in the country. After which, regardless of a sophisticated financial state of affairs, it has the belongings to rebound. First, its vary of low price automobiles (Logan, Duster, Kwid), which permit it to beat the markets of growing nations. After which her alliance with Nissan, even when it had an air hole. It’s in tough occasions that synergy measures might be essential and get Renault out of the disaster "
Does the corporate pay for unhealthy selections made prior to now?
The well-known mannequin of the 5,000 greenback automobile that has made all of Renault's fortune because the early 2000s has not really benefited its factories based in France, since it’s based totally on manufacturing in low-cost nations. Know-how envied by the competitors, however which comes up in opposition to the brand new anti-pollution requirements set by Europe. The celebrities of its automobile fleet fortunately exceed the 95 g / km of CO2 emission sought, and the quantity of fines promised by Brussels guarantees to be appreciable. Compelled to desert thermal and diesel automobiles as shortly as everybody else, Renault has additionally weakened by itself with cascading governance issues because the arrest of
his former CEO Carlos Ghosn in 2018. His new CEO, poached at Volkswagen, will not be anticipated earlier than July.
– LCI (@LCI) May 22, 2020
Flavien Neuvy's opinion : "We knew earlier than the Covid that the automotive business was going to enter a tough interval after ten years of unimaginable progress. The golden age is over, as a result of producers should each make investments closely to scrub up future fashions, and handle a stabilization of gross sales reasonably downward, whereas manufacturing capacities are very (too?) Excessive, together with included in French factories. To those structural difficulties, Renault should add
in addition to his own leadership problems. Within the automotive business, the place strategic selections must be made virtually daily, it weighs rather a lot when there’s a lag of a number of months on the normal administration stage, "
Can the federal government actually blackmail Renault and impose drastic counterparts on it?
Edouard Philippe is the primary to step as much as the plate on Wednesday, promising to be "Uncompromising with Renault on the preservation of sites", earlier than a second blade signed Bruno Le Maire, who roughly threatens to not ship the switch of 5 billion earlier than receiving ensures. Nonetheless, these ensures appear reasonably imprecise: "We ask producers to make commitments in three instructions: the electrical automobile, respect for his or her subcontractors and the placement in France of their most technologically superior actions",
said the Minister of Economy in the Figaro, earlier than finishing on Europe 1: "Flins should not shut". Bruno Le Maire is aware of that the case of the Yvelines manufacturing facility, the place 2,600 everlasting staff assemble the Zoé specifically, has the whole lot to show into an explosive file à la Florange (Arcelor) or Aulnay-sous-Bois (PSA), of the sort to mark his time, and his minister.
– The Telegram (@LeTelegramme) May 22, 2020
Flavien Neuvy's opinion : "Given Renault's state of affairs, it’s hardly stunning that threatened websites are introduced world wide, and never solely in France. Afterwards, after we contact on the automotive business, it at all times provokes a number of dialogue, as a result of it’s an business that makes lots of people work and that represents a robust image in our nation. The state can’t ignore Renault. However with regard to the ensures requested by the state, I await extra explanations. For instance, after we speak about relocating probably the most superior actions, I don't know what is supposed behind that. Within the meantime, I cannot permit myself to evaluate. ”
Can the restoration plan in preparation for the entire sector put Renault (and the others) again in the appropriate route?
After tourism and earlier than aeronautics, your complete automotive sector and its 400,000 industrial jobs will know subsequent week what the state imagined to get it out of the panic. In view of the intentions displayed by Bruno Le Maire on the “decarbonation of the French financial system”, and the stress of public opinion which can intend to demand accounts for the ecological compensation required from Renault and others, the precedence may very well be directed in the direction of the institution of bonuses for the acquisition of unpolluted automobiles (hybrid and electrical). That would assist Renault and its electrical blockbuster, the Zoé, nevertheless it’s like a 4D blockbuster: for the second, no one is shopping for virtually (95% of gross sales are from thermal or diesel engines).
Automotive: in the direction of a restoration plan not favoring solely the electrical https://t.co/JFZc630R5k
– Eric Vander Steen (@Eric_vds) May 22, 2020
Flavien Neuvy's opinion : "Right now, what I need to see is what precisely would be the scope of this help plan.
Because if it targets only electric cars, this isn’t what is going to revive the French automotive business and which can make factories run on the top of their manufacturing capability. Take the batteries, it’s first in Asia. And above all that doesn’t clear up the query of the gear producers who manufacture the motors, since there are not any motors on electrical automobiles! So it might have a reasonably restricted influence if we keep there. "