Automakers Aren't Begging for Money, Says Renault's Ghosn
Basically, carmakers turn to state governments because banks around the world aren't willing to approve new credits or, if they do, they establish very high rates, Ghosn said. This makes government funds the only possible choice when aiming to get out of the crisis and remain in business, he added.
"We are not asking for money. We just need loans. The banks do not want to lend us money -- or only at prohibitive rates. Last year we obtained rates of 3.5 to 4 percent. Today we get offered rates of 9 percent," Renault's CEO told Les Echos according to Autonews. "If one wants to avoid a social drama, we need access to credit at reasonable rates and if I say that I am thinking in particular about the employees of Renault," he said.
Questioned whether the car industry will rely more on alliances formed by various crisis-hit automakers, Ghosn said that he don't expects to see new partnerships in the future unless the economic situation gets stabilized.
"I do not think that you will see many initiatives of that sort as long as the financial systems have not stabilized," Ghosn told the aforementioned source.
The French government approved in February a 3 billion euro loan to domestic struggling automakers in order to support their efforts in the green car sector.
“We are very pleased with the loan granted to us by the French government. In light of the exceptional crisis impacting our entire industry, access to credit was indispensable for supporting our activity and that of the automotive industry. It will also enable us to pursue our developments and investments in sustainable mobility,” Carlos Ghosn, said at that time.