Renault mustn't develop capacity abroad to get state support: French minister

The French government has promised Renault a 5 billion euro ($5.47 billion) state-guaranteed loan to help it cope with the coronavirus crisis.
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| Updated on: 25 May 2020, 10:24 AM
This picture shows the Renault factory in Douai (North of France) on May 20, 2020. (AFP)
This picture shows the Renault factory in Douai (North of France) on May 20, 2020. (AFP)

French Environment Minister Elisabeth Borne said on Sunday the French government wants Renault to stop developing production capacity abroad in exchange for state support.

The government has promised the car maker a 5 billion euro ($5.47 billion) state-guaranteed loan to help it cope with the coronavirus crisis, although the finance minister has said the deal has not yet been signed yet as talks are ongoing about Renault's commitments to government requirements.

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(Also read: Renault not yet on board 5 billion euro bailout ship. Here's why)

Asked about French media reports about the possible announcement of a government support package for the automotive industry on Tuesday, Borne said the state will increase subsidies for electric cars and will provide incentives to help low-income people switch to newer, less polluting cars but she gave no details on the timing or budget.

First Published Date: 25 May 2020, 10:24 AM IST
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