Renault has called for the French government to ensure the carmaker has access to enough cash to weather the industry crisis.
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The company warned that it might otherwise be forced cut technology investments.
The French government is meeting industry bosses in Paris to discuss what can be done to help a sector struggling with falling sales as the global downturn hammers consumer spending.
Reuters reported that Renault Chief Operating Officer Patrick Pelata said it was too early to comment on Prime Minister Francois Fillon’s announcement yesterday that up to EUR6bn could be made available.
The news agency said Pelata described the industry as facing an “extremely severe” crisis and that loans are needed but the banks aren’t lending.
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By GlobalData“We obviously strongly request the government that what they will do for PSA is the same as what will be done for Renault. Obviously for us, the best would be to have a loan, which is what the banks are not doing and which is the only thing we are asking for now,” Pelata said.
“We need cash to go through this crisis in good health, and if we don’t have that the only other way to find cash is to reduce drastically investments including technology investments which is not frankly the best to do in a crisis.”
See also: FRANCE: Government readies EUR6m state aid
