French Government to be Part of Renault’s Strategic Committee

The decision to move the whole production for the next generation of the Clio outside French borders has created more difficulties for Renault than the company might have expected: a representative of the French government will be part of the strategic committee of Renault from now on, as the French Industry Minister Christian Estrosi told Reuters.

As a consequence of Renault’s announced decision to produce the Clio’s successor exclusively at Bursa, in Turkey, the French President summoned the company's executives to a meeting last Saturday, in order to discuss the potential unemployment issues created by this state of events.

According to Reuters, Sarkozy and Etrosi had a 60 minutes meeting with Renault’s executive chairman Carlos Ghosn and the company’s chief operating officer Patrik Pelata. After the meeting, Ghosn said that the next Clio will be built in Flins, France and Bursa, Turkey, without providing any more details.

However, he did mention that the Group’s new electric vehicle, the ZOE, will be produced at Flins, thus maintaining jobs there. France holds 15.01 percent of Renault’s stakes, having two representatives among the company’s non-executive board.

So, Renault is not only maintaining some of the future Clio’s production at Flins, but it will also use the plant to manufacture the ZOE from 2012, as the company will additionally offer the government a place in its strategic committee.These decisions come on an economic background, as the French Government has offered Renault a 3 billion euro loan (early 2009) on the condition the latter will maintain French jobs.

So, if the whatever-part on your Renault car fails, from now on you can blame the government. Let’s think (a bit) more sober and hope that no eco-minded official decides to reduce Renault Sport’s financing in the future.