Without a loan of 5.5 billion dollars, Renault may go bankrupt

Without a loan of 5.5 billion dollars, Renault may go bankrupt

May 23, 2020 0 By autotimesnews

As part of his recent interview, the French finance minister said that if the automaker does not get a big loan, then he may not get out of the current deplorable financial condition.

Several years were difficult for the Renault-Nissan-Mitsubishi alliance, and the coronavirus pandemic certainly does not make things easier. How bad is it? According to a reputable agency Reuters, Nissan may eliminate up to 20,000 jobs, and Renault may completely go bankrupt. Both companies will announce the update of their strategies on May 27.

 Speaking on the Europa-1 radio, French Finance Minister Bruno Le Mare made a terrible prediction, saying: “Yes, Renault may disappear.”
Mr. Le Mare called on Renault to keep Flins factory open, with around 2,600 workers, and a production hall for the Zoe and Nissan Micra electric cars. The French government is currently weighing the pros and cons of whether to give Renault a $ 5.5 billion loan to help the company withstand the coronavirus pandemic. Meanwhile, Renault management is seriously considering the possibility of reducing its lineup by eliminating some models.

 In Japan, things are not much better, since Nissan is struggling with the influence of the virus on its global sales, and with the consequences of the Carlos Gon scandal. According to local publications, a company could cut 20,000 jobs worldwide, less than a year after 10 percent of its workforce is laid off.

 Sources at Nissan told Reuters that the company is trying to “become more flexible” and focus on China and North America, while limiting its activities in Europe. Meanwhile, annual sales may fall to a million units, as demand for brand cars continues to decline as the pandemic worsens.