French auto workers are continuing to threaten to blow up their car parts factory after talks between their union and the car maker Renault fell through last night.

The workers from the bankrupt company New Fabris have been demanding a EUR30,000 pay-off for each of the 366 laid off workers from Renault and PSA-Peugeot, which had made up 90% of their company’s business.

According to local reports, talks held in Paris between union delegates and Renault management ended last night with no deal. Some 150 workers demonstrated outside the Renault headquarters.

The workers, dozens of whom are occupying the New Fabris plant, claim they will blow up a string of gas canisters at the end of the month unless their terms are met.

“The ultimatum stands for July 31. We are giving Renault and PSA 15 days to raise their offer,” said CGT union leader Guy Eyermann.

As reported on just-auto earlier this month, Eyerman told French radio that gas bottles have been placed in various parts of the factory and are connected to each other.

The Chatellerault factory, which employs 360,  is thought to house car parts worth some EUR2m, as well as a new Renault machine estimated at a further EUR2m, the union leader said.

“We are not going to let PSA and Renault wait until August or September to recover the spare parts and machines still in the factory,” he has warned.

“If we get nothing, they get nothing at all.”