PARIS — A further investment by the French government in Renault would not be the ideal use of state resources, the automaker’s chairman said on Thursday, adding that the nationalization of the company was not being contemplated.
“It isn’t on the table,” Jean-Dominique Senard said during a hearing in the lower house of the French parliament. “I have nothing against the state, I’m just saying that it’s not useful to spend taxpayer money to invest it in a company that needs to find its own resources,”
The French government currently has a 15 percent stake in Renault.
The automaker tapped state aid to help cope with the coronavirus pandemic via a 5 billion euro ($5.69 billion) state-guaranteed loan.
Senard said the loan will help improve the Renault’s treasury situation, tiding the automaker over this month and in July. The loan, which is handled by commercial banks and guaranteed by the government, is a safety net and would be repaid very quickly if Renault ever drew upon it, Senard said.
“The coronavirus pandemic created some major treasury issues,” the executive added.
Nissan partnership
Senard also said the automaker’s relationship with alliance partner Nissan has entered an “incredibly positive” phase after episodes of strained relations in recent years.
“We have put in the work, we are in an incredibly positive dynamic,” Senard told the hearing. The two automakers presented plans in May to deepen their collaboration.
Senard added that Renault was confident that car sales, which have ground to a halt during the pandemic and ensuing lockdowns, would pick up again in France in the coming months.
