Renault, PSA entitled to French government aid for loans, bills; nationalisation if necessary – Le Maire

Renault, PSA entitled to French government aid for loans, bills; nationalisation if necessary – Le Maire

The French government has told automakers Renault and PSA that they are entitled to receiving financial help such as guarantees on loans and leeway on bills as companies are trying to cope with the fallout from the coronavirus outbreak, Automotive News Europe reported.

The country has outlined a number of measures this week to help businesses survive the ongoing crisis, including government loan guarantees totalling 300 million euros (RM1.44 billion) as well as a deferral of taxes and payroll charges for those who need it due to shutdowns resulting from the outbreak.

French finance minister Bruno Le Maire held discussions with PSA chief Carlos Tavares and Renault executives including chairman Jean-Dominique Senard regarding the automotive industry’s prospects, and these companies would be entitled to the French government’s assistance too, if required, a ministry official said.

“The situation is extremely clear. It is out of the question to see big French companies and industrial icons disappear. If to protect our national industrial heritage, we have to resort to nationalisation, we are prepared to do so,” Le Maire told a business radio station ahead of his meeting with the car companies, without naming any of the firms.

Other automotive suppliers are also affected during this time, as tyre manufacturer Michelin has closed its factoris in Spain, Italy and France for at least one week, Automotive News Europe added. Meanwhile, the automotive industry federation in France said Tuesday that it has asked the government for a ‘much broader support package’ than measures already announced to counter the effects of the crisis on vehicle sales, the report added.

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Mick Chan

Open roads and closed circuits hold great allure for Mick Chan. Driving heaven to him is exercising a playful chassis on twisty paths; prizes ergonomics and involvement over gadgetry. Spent three years at a motoring newspaper and short stint with a magazine prior to joining this website.

 
 

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