France warns Renault could disappear; Nissan plans job cuts
Europe's car industry was put on a fresh alert for job losses on Friday (May 22).
France's finance minister warned Renault could disappear if it didn't get help soon
Just as a Japanese news report said partner Nissan was considering 20,000 layoffs, with many in Europe.
Renault and Nissan have been in alliance for the past two decades, and are due to announce a strategy update next Wednesday (May 27).
France's Bruno Le Maire, who is considering a $5.5 billion loan for Renault, told a French radio station the company's future is at stake:
"Yes, Renault could disappear, yes big industrial manufacturers can disappear, we have to be clear about that. My approach throughout this economic crisis has been to tell the French people the truth, I have never hidden how serious the crisis."
Renault declined to comment on Le Maire's remarks.
The warning came as reports from Japan suggested Nissan might axe 20,000 jobs from its global workforce.
The report said most of the cull would be in Europe and developing countries.
Although two people with knowledge of the matter told Reuters the number of cuts had not been finalised.
Nissan declined to comment.
The Japanese automaker said in July last year it would cut 12,500 employees, nearly 10% of its workforce.
If it raises that figure to 20,000, it would broadly match the number of jobs it shed during the 2009 global financial crisis.
Sources have recently said Nissan wants to scale back its European business to focus on sports-utility and commercial vehicles.
Next Wednesday's update was originally billed as a reset of the Renault-Nissan relationship, which was rocked by the ousting in 2018 of long-time boss Carlos Ghosn.
The update will now likely take on even greater significance.
