The French authorities mentioned it has signed off on a state-backed mortgage of €5 billion ($ 5.6 billion) for carmaker Renault within the wake of the Covid-19 shutdown, which had prompted the corporate to put off practically 15,000 folks worldwide.
The mortgage has been authorized by Finance Minister Bruno Le Maire after his assembly with executives, labor representatives and native officers. In response to Renault, the credit score facility will assist finance the corporate’s liquidity necessities.
Final week, the French agency introduced 15,000 job cuts globally, together with four,600 in France, as a part of a serious restructuring. The announcement sparked weekend protests at some factories, together with at Maubeuge, in northern France – though Renault’s chairman, Jean-Dominique Senard, has assured staff that this web site is not going to be closed.
READ MORE: Renault staff protest automaker’s plan to axe practically 15,000 jobs
In February, Renault unveiled its first annual loss in a decade, after its former CEO, Carlos Ghosn, was arrested in Japan in 2018 over alleged monetary misconduct at its accomplice Nissan, the place Ghosn was chairman.
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The corporate has pledged to chop prices by €2 billion ($ 2.2 billion) to regain its monetary footing after gross sales in its core French market plunged 89 % in April, damage by the manufacturing unit shutdowns and dealership closures around the globe as a consequence of pandemic.
France’s President Emmanuel Macron has promised an €eight billion ($ 9 billion) plan to revive the nation’s auto trade by making it the European chief in electrical vehicles, together with subsidies for brand new automotive purchases.
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