The dispute over the planned cut of thousands of jobs at the French automaker Renault is entering a new round.
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Economics and Finance Minister Bruno Le Maire is now personally intervening for the first time. He is planning to receive Renault and union representatives, as well as people’s representatives, in Paris on Tuesday to debate the future of the major Maubeuge plant in the north of the country, ministry circles said.
The troubled carmaker announced on Friday that it plans to cut around 15,000 jobs worldwide – around 4,600 are in the home country France. According to Renault President Jean-Dominique Senard, a small plant in the Paris area is to be closed by 2022. Further closings are not planned. However, there should be changes in several domestic plants. In an interview at the weekend, Senard reiterated that Maubeuge should not be closed.
On Saturday, thousands of people demonstrated in Maubeuge against the savings plan. Relocations to other factories of the manufacturer are feared. The case is politically delicate: around a week ago, President Emmanuel Macron had asked the company for commitments to the Maubeuge and Douai plants as a prerequisite for the granting of a state-guaranteed loan of five billion euros to the manufacturer.
Renault was in the red last year and is badly affected by the corona-related auto sales crisis. The state is an important player because it holds 15 percent of Renault’s shares. Renault has 14 locations in France alone.
French state gives green light to Renault injection
The French state clears the way for a loan of five billion euros in favor of the car manufacturer Renault. Economy and finance minister Bruno Le Maire wanted to endorse the state guarantee for it, his ministry said in Paris on Tuesday. The manufacturer, which had run into financial difficulties, announced last week that it would cut around 15,000 jobs worldwide and cut billions in costs in order to escape a serious crisis.
Le Maire met with representatives from Renault, the unions and representatives of the people. It was about the future of the large Maubeuge plant in the north of the country. A future plan is now to be negotiated to secure production and employment beyond 2023. A massive relocation of production is feared in Maubeuge near the border with Belgium.
The case is politically delicate: a week ago, President Emmanuel Macron had explicitly requested commitments to the Maubeuge and Douai plants in northern France as a condition for the billion dollar loan. According to Renault, these two factories are to become a center for electric cars and light commercial vehicles. The state is an important player at Renault with a share of 15 percent.
According to earlier statements by Renault President Jean-Dominique Senard, a small plant in the Paris area will be closed by 2022 as part of the corporate restructuring. This plant in Choisy-le-Roi is now on strike, according to the French news agency AFP, citing unions.
No further closures are planned, Senard had assured. Renault was in the red last year and is badly affected by the corona-related auto sales crisis. The manufacturer has 14 locations in France alone.
In Paris, Renault shares are currently up 1.28 percent to EUR 21.73.
/ cb / DP / he
PARIS (dpa-AFX)
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Image source: Renault Deutschland AG, FotograFFF / Shutterstock.com, JuliusKielaitis / Shutterstock.com
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