Renault chairman: Renault may seek state guarantee but no longer consider nationalization

Even with many negative impacts such as closing factories and losses, Renault still has its own stubbornness.

According to French media reports, Renault chairman Jean-Dominique Senard said Renault was not considering nationalization, but during a corona virus pandemic, Renault may seek a guarantee from the French government to strengthen its finances situation.

Sennard said Renault may seek state guarantees like other companies, but renationalization is not on the agenda, "remember, we can no longer do this."

Earlier, the French government issued a policy stating that it is willing to provide 300 billion euros (about 2.27 trillion yuan) in government loan guarantees to companies affected by the epidemic, and related companies can also delay paying various taxes. The French government has made it clear that the above policy will be mainly targeted at French auto companies.

French Finance Minister Bruno Le Maire said he did not want to see large French companies and industrial giants go bankrupt. In order to protect French industry, nationalization may be resorted to, and the French government was prepared to do so, but he did not No company name was mentioned.

At present, Le Mere has had a direct dialogue with executives such as Carlos Tavares, President of Peugeot Citroen Group (PSA), and Renault Chairman Xenad. Le Mere said the French government would have the right to take these measures if needed.

Compared to PSA, Renault may be more likely to be taken over by the government.

In 2019, PSA's overall revenue reached 74.731 billion euros and adjusted operating profit was 6.324 billion euros, an increase of 11.2% year-on-year, and its profitability reached a record high. In 2019, Renault's annual operating income was 55.537 billion euros, a decrease of 3.3% year-on-year, and operating profit was 2.1 billion euros, a 30% year-on-year decrease. In addition, the company's net profit plummeted 99% last year, from 3.5 billion euros in 2018 to just 19 million euros, the company's first loss in ten years.

In fact, as early as 1945, Renault had been annexed by the French interim government and became a state-owned enterprise. It wasn't until 1996 that the French government allowed part of Renault's shares to be opened to the public before Renault was privatized. However, the French government is still the largest shareholder of Renault, with a 15% stake in Renault and two board seats. Now affected by the outbreak, Renault has closed its European plants indefinitely, and the negative effects of the arrest of the alliance leader Carlos Ghosn have not disappeared.