Renault must stop developing capacity abroad in exchange for state support – minister

FILE PHOTO: The logo of Renault is seen at the Renault automobile factory in Flins as the French carmaker ramps up car production with new security and health measures during the outbreak of the coronavirus disease (COVID-19) in France, May 6, 2020. REUTERS/Gonzalo Fuentes

PARIS (Reuters) – French Environment Minister Elisabeth Borne said on Sunday the French government wants Renault (RENA.PA) to stop developing production capacity abroad in exchange for state support.

The government has promised the car maker a 5 billion euro (4.49 billion pounds) 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.

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.

Reporting by Geert De Clercq; editing by David Evans

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