differ from our complex strikes in full swing, Europe was under the impact of the epidemic, many car manufacturers are forced to shut down, Renault in France shut down 12 factories all . The French government has issued a policy, willing to be affected by the outbreak of enterprises to provide 300 billion euros (about 2.27 trillion yuan) government loan guarantees, and related businesses can also delay payment of the tax burden. But the French government has made it clear that the policy will be mainly for the French car company, while PSA Peugeot Citroen and Renault become the first group or quot; care quot; business. It is noteworthy that the wording of the French Minister of Finance when Lemerre (Bruno Le Maire) to elaborate these policies. Lemaire said, quot; we do not want to see the big French companies and industrial giants bankruptcy, in order to protect French industry, we may resort to nationalization, and we are ready to do so. quot; after Renault chairman let middot; Dominique middot; Sena De (Jean-Dominique Senard) responded that, under the new coronavirus epidemic hit, Renault is likely to seek financial support from the French government, but does not consider the French government quot; nationalization quot; suggestions.
Why is Renault
If you really want to nationalize Renault is also greater than the probability of PSA Peugeot Citroen. World War II Hou Leinuo once nationalized. May 1992, Louis middot; Schweizerhof become either Renault eighth. He works for the privatization of Renault doing to prepare. 1994, the French government sold a 48 percent stake in Renault to the public. May 13, 1996, 6 percent stake in Renault will once again sell to the public. Currently, the French government is currently holding about 15 percentage share of Renault, is the largest shareholder of Renault, and Renault has two seats in the board of directors.
Renault plans to close 12 plants located in France, the number of affected workers will reach 1.8 million people. This appears to be, its industrial economic development and employment environment will cause substantial damage in the French government. In order to maintain the French economy, the French government again moved to nationalize Renault plans.
Although Renault has made it clear that it will not consider the French government quot; nationalization quot; suggestion, but excludes things still further changes.
If Renault would nationalize what impact
whether the nationalization of Renault, the French government, Renault, Nissan three parties will have three different reactions. French government wants to nationalize Renault does not consider, Nissan is totally against, why is there such a difference? This is also from Renault impact if nationalization will bring.
For the French government, Renault as a major automotive company, its business conditions directly affect the French economy and employment, control of Renault in solving the employment rate, to maintain social stability has an impact but also converting it quickly in an emergency state.
Reynolds, if nationalized, the government will thus affecting the development of enterprises from many considerations, this is not conducive to the overall development of enterprises, detrimental to the interests of current shareholders. But Renault for the first time last year at a loss, resulting in revenue this year will be even worse epidemic, the government injected capital allows companies to better survive. So now do not consider the nationalization of Renault, but what the future there are variables.
Nissan, if the French government continues to holdings of shares in Renault, will eventually lead to the actual situation of Nissan will be taken over by the French government. Just from the stock point of view considerations, the current Renault shares held by Nissan 44.4 percent, is Nissan’s largest shareholder, the development has the absolute right to speak Nissan, and Nissan now holds only Renault 15 percentage stake in the current agreement with the French government, Nissan and not about the development of Renault.
written in the last
For large enterprises countries, not only economic development, there is a guarantee employment to maintain social stability and so on, so now the state does not usually look at large-scale corporate bankruptcies, because this will have a tremendous impact on society as a whole, as GM filed for bankruptcy protection after the US government became the largest shareholder in the new GM. So if Renault’s future revenues deteriorate further, it was nationalized nor is it not possible.