PARIS — Renault finalized a 5 billion euro ($5.6 billion) credit facility with the French government, strengthening the automaker’s finances in the wake of the coronavirus pandemic that has ravaged the auto industry.
The facility carries a guarantee from the French state of up to 90 percent of the total amount borrowed, Renault said in a news release on Wednesday.
France owns a 15 percent stake in Renault.
Renault also said that the loan would help finance the company’s liquidity requirements.
Renault Chairman Jean-Dominique Senard said on Tuesday that the government has not attached any major conditions.
The company last week unveiled plans to cut about 15,000 jobs worldwide, including 4,600 in France where the automaker will seek voluntary departures and use retirement schemes.
The announcement sparked protests at some factories, including at Maubeuge in northern France, although Senard has said the site will not be closed.
Senard told Franceinfo radio on Tuesday that Renault aimed to present a new strategic plan, including the vision for its brands, by the end of the year, after former Volkswagen Group executive Luca de Meo becomes CEO on July 1.
