EIB Approves €3bn for French Manufacturers, Renault Gets €400mn

The European Investment Bank (EIB) has approved the 3 billion euros for the French automotive sector, with Renault to receive up to 400 million in state aid. As we told you in February, the funds are supposed to help ailing French car manufacturers, including Renault and the PSA Peugeot Citroen alliance, to direct their efforts towards the green car industry and develop new hybrid and fuel-efficient models.

According to figures, the automotive markets fell 24.2 percent in Europe and 12.9 percent in France since the start of the year.

"And the downturn has not spared emerging markets. Against this grim backdrop, the automotive industry is making a major transition towards mobility solutions that protect the environment," Renault said. As a result of the approved loan, the French manufacturer "applauds the move by the EIB, which will help the automotive industry weather the crisis while continuing to adapt to new emission standards and to satisfy consumer requirements for vehicles that show greater respect for the environment."

Renault expressed once again its commitment to develop green cars and explained it plans to introduce new technologies for standard engines as well as new transmission system to cut CO2 emissions on both gasoline and diesel engines.

Thanks to the scrapping incentives offered by the French government Renault increased production of the new Twingo by approximately 8.9 percent to 14,110 units, following the increasing demand in most major European markets.

“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, President of Renault, said in February.