Part of the article is quoted from French Daily and Reuters.

In the global "COVID-19" epidemic, Europe, where automobile industry is concentrated, is in a fragile period. The supply chain is interrupted, the factory stops production, the market demand drops, and the inventory is high, which makes it difficult for dealers to continue. At the same time, it also has a huge impact on large automobile groups.

Affected by the epidemic, PSA and Renault, two major French automakers, announced the closure of their factories in several European countries.

On March 6th, PSA Group announced that it would temporarily close the 15 factories in Europe involving France, Spain, Germany, Britain, Portugal, Poland, Slovakia and other countries in the next four days until March 27th. Renault also suspended its production activities in France and Spain, and the time for resuming work will be announced separately.

In order to help France's two major auto lifelines cope with the adverse impact of the epidemic, the French government, which both hold shares, recently announced that it is willing to "rescue" and help enterprises tide over the difficulties.

On February 18 local time, the French government informed PSA Group and Renault Group that they had the right to provide loan guarantees and flexible payments to the two French automakers.

An official of the French Ministry of Finance said that on February 18, French Finance Minister lemerre (Bruno? Le? Maire) and Carlos Tavares, Chairman of PSA Group Management Committee (Carlos? Tavares) and Jean-Dominique, Chairman of the Board of Directors of Renault Group? Senior executives of Renault Group, including Senard, held a conference call to discuss the prospects of the automobile industry, and said that if necessary, the two companies have the right to enjoy these rescue measures.

Last week, France announced a series of measures to help enterprises tide over the crisis, including the government loan guarantees of 300 billion euros (about 2.3 trillion yuan), and the postponement of taxation and payment of wages to enterprises in need.

"The situation is very clear ... we can't watch the big French companies and industrial idols disappear." Lemerre told BFM Commercial Radio before the negotiations with PSA and Renault, "If we want to protect our country's industrial heritage, we need to resort to nationalization, and we are ready for this step." But lemerre didn't mention the name of the company.

Lemerre later said that he would soon submit different responses and options to French President Macron to help the country's largest company cope with the epidemic crisis, including the possibility of nationalization.

At present, the French government holds 0/4% shares of PSA Group/KLOC-and 0/5% shares of Renault Group/KLOC-respectively. After World War II, the French government nationalized Renault Group, but in 1996, Renault Group was privatized.

Judging from the current operating conditions, lemerre's idea of "nationalization" points to Renault Group. At present, PSA Group, which is merging with Fiat Chrysler Automobile Company (FCA), has performed well recently, and its profitability reached a record high in 20 19 due to its focus on higher-priced vehicles.

But in February this year, Renault Group suffered its first loss in nearly 10 years. Subsequently, Renault Group said that it would cut the cost by another 2 billion euros in the next three years.

But judging from Renault Group's response, the nationalization of lemerre is just wishful thinking. On March 22nd, local time, Seinard told Le Parisien that in order to cope with the "COVID-19" epidemic crisis, Renault may seek guarantees from the French government to boost its financial situation, but the nationalization of automobile manufacturers is not within its consideration.

"We may seek government guarantees like other companies." "France Daily" quoted Senard as saying.

In the last global financial crisis, Renault received a government loan of 3 billion euros (about 3.2 billion US dollars). Senard said that as far as the current situation is concerned, renationalization is "not on the agenda". "Remember, we never reached the level of the 2008-2009 financial crisis," Senad said.

At present, French industrial institutions are pushing the government to provide assistance to the automobile industry. The French Automobile Industry Union said last Tuesday that it hoped that the government could provide more extensive support measures than already announced to cope with the impact of the crisis on automobile sales.

This article comes from car home, the author of the car manufacturer, and does not represent car home's position.