Renault in very big trouble: “Bankruptcy is imminent”

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In recent days, much had already come out about the financial difficulties that Renault would face. At least three factories should be closed to get a cut of 2.2 billion euros off the ground. French Finance Minister Bruno Le Maire is sounding the alarm.

“Renault can disappear from the car scene,” he said in crystal clear terms with the radio station Europe 1. “Renault is in very difficult financial times.”

Renault turned its worst year in the past decade in 2019 and this year’s corona crisis is also hard at the French multinational. The French government owns 15% of Renault and a capital injection in the form of a loan should keep Renault afloat, but Le Maire has not yet signed the agreement. It would be an amount of five billion euros.

“We can only draw when we know which strategy Renault has in mind. However, we would like to see more cars being produced, especially in the field of electric cars.”

The consequences for the Renault Formula 1 team are not yet clear, but chances are that the money-guzzling F1 project is not at the top of everyone’s priority list when it comes to rescuing the Renault brand.



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