Coronavirus: Renault chairman says car giant will not be nationalised
Renault’s chairman is adamant that the French car giant will avoid renationalisation despite the immense pressure being put on the industry by the coronavirus outbreak.
Speaking with Le Parisien, Jean-Dominique Senard did not rule out seeking help from the French government, which recently announced sweeping measures to protect businesses, but said a renationalisation “was not on the agenda” as things stand.
“Like other companies, we may seek state guarantees”, Senard added.
Pointing to the financial crisis of 2008 to 2009, when the firm received €3bn (£2.8bn) in help from the government, he said:
“Remember that in 2008-2009 we never got to that point.”
Production of some of the firm’s models is down as much as 90 per cent as the epidemic forces a widespread closure of factories due to health concerns.
Last week Renault shut all 12 of its sites in France, which employ roughly 18,000 workers, as well as other plants in Morocco and Portugal.
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Operations have also been shuttered in China for over a month due to the spread of the virus.
Last week French president Emmanuel Macron pledged that no business, no matter how large, would be allowed to go bust as a result of the disease.
The announcement came as the French government unveiled a €300bn package of loan guarantees for stricken companies.
Renault was privatised in 1996, a move that led to its profitable partnership with Japanese auto giant Nissan, a union which is now under scrutiny due to an ongoing scandal involving former boss Carlos Ghosn.
The state still holds a 15 per cent stake in the business, which was first nationalised in the aftermath of World War Two.
Finance minister Bruno le Maire already warned that he will use all measures at his disposal, including nationalisation, to protect France’s economy and businesses.