French Finance Minister, Bruno Le Maire has signed a EUR5bn (US$5.6bn) loan guarantee for Renault and is urging discussions start immediately concerning the future of the automaker’s Maubeuge plant.

Renault has launched a consultation process on the Douai and Maubeuge plants to study the creation of an electric and light commercial vehicles centre in northern France.

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“The French Minister of Finance [signed] a loan guarantee for EUR5bn, which has been granted to Renault,” said a source in the Finance Ministry in Paris. “[He] has called for social and technical dialogue to start immediately to develop an industrial future for Maubeuge.

“This project should guarantee for the long term, beyond 2023, jobs and the level of industrial activity at Maubeuge. No decision will be taken on the transfer of acclivity until such a future product has the agreement of [all] parties.

“Discussions will start next week between unions and Renault management, as well as regional representatives. A new meeting, chaired by the Finance Minister with politicians, labour bodies and Renault management, will take place in September to take stock.”

Renault announced the finalisation of a credit facility agreement with a banking pool, for a maximum total amount of EUR5bn benefiting from a guarantee of the French State.

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“This credit facility, which may be drawn in whole or in part, will help finance the group’s liquidity requirements within the context of an unprecedented crisis,” said a Renault statement.

The main terms and conditions of this credit facility are:

  • A maximum total amount of EUR5bn which may be drawn in whole or in part and in one or several times, until 31 December, 2020
  • An initial 12-month maturity, with an option for Renault to extend the maturity for an additional three-year period; a guarantee from the French State up to 90% of the total amount borrowed
  • A banking pool made up of five banks: BNP Paribas, Crédit Agricole, HSBC France, Natixis and Société Générale

Renault is looking to reduce its fixed costs by more than EUR2bn across a three- year period, which will involve the loss of 4,600 jobs in France and 10,000 around the world.