Renault and Peugeot reportedly have committed to increasing their orders from ailing components-maker GM&S Industry after their chief executives spoke with economy minister Bruno Le Maire, his ministry said on Sunday.
The future of the company, which employs 277 people in central France and is facing liquidation, was a priority of president Emmanuel Macron's new administration, a government spokesman said last week.
Go deeper with GlobalData
Discover B2B Marketing That Performs
Combine business intelligence and editorial excellence to reach engaged professionals across 36 leading media platforms.
Renault agreed to raise its orders by EUR5m to EUR10m while PSA committed to lifting its purchases EUR2m to EUR12m, the ministry said in a statement cited by the Reuters news agency.
"These commitments will allow the firm in 2017 to reach a turnover close to EUR25m, and make it possible for it to continue operations and pursue takeover discussions," it said.
As reported on Friday by just-auto, a union was threatening to blow up the stamping plant as the clock ticked towards its liquidation tomorrow (23 May) in the face of dwindling orders.
The La Souterraine factory in the Creuse region of France produces stamping parts for PSA Group and Renault and while both automakers are committing to its future, unions fear its potential demise will spell the end of meaningful employment for its ageing workforce.
The Confédération Générale du Travail (CGT) had said it was prepared to detonate gas cylinders attached to a tower at the while machinery had already been destroyed using welding torches.
