Pressed by the State to save SAM, Luca de Meo, Renault boss, says “niet” – La Tribune

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Luca de Meo had warned, however. During the day of the automotive industry, the CEO of Renault had sent a very clear message to representatives of the sector: “the approach which consists in saying that it is up to the manufacturers to support the sector, puts us in difficulty and threatens the future of the sectore “. In other words, the French automobile group will not support the takeover of sites in difficulty and whose takeover projects are not viable.

Without any commitment from Renault, the Minister of the Economy, Bruno Le Maire, announced this morning that the buyer’s offer was not credible. The State and the Occitan region had nevertheless provided substantial financial support. The commercial court could announce the liquidation of the company on Friday.

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A non-sustainable project, according to Renault

As soon as said, immediately done … On Tuesday, Renault published a press release indicating that it was responding unfavorably to the injunction of the Toulouse commercial court to support the project to take over the Société Aveyronnaise de Métallurgie (SAM), of which he is the main customer.

“An in-depth analysis of the file does not confirm the sales assumptions presented in this offer. Once again, as had been observed in July 2021, this offer does not present the conditions of sustainability and security necessary for the company and its employees. There are strong doubts about the financial soundness, despite the external financial support envisaged (by the State and the regional council of Occitanie, editor’s note), and the real investment and recovery capacities of Jinjiang SAM by Alty-Sifa, “writes the automotive group in its press release.

For the 350 SAM employees, it was a defeat that was feared, but hope was still alive as the authorities, in particular through members of the government, had assured that they would do everything in their power to ensure that Renault is committed. on the way to support.

SAM foundry: the State puts pressure on Renault to find a buyer

The promise of Bercy

Agnès Pannier-Runacher, Minister Delegate for Industry to Bruno Le Maire, had thus appointed Renault as responsible for the future of the site. The entire ministerial cabinet, up to Matignon, was mobilized to bend the management of Renault, and avoid an industrial tragedy in a region already heavily impacted by the automotive transformation.

Dive into the Aveyron, a land ravaged by the transformation of the automobile

At Renault, we admit in “off” have been subjected to strong government pressure. Executives deplore the stigmatization of the diamond group even though it was the last ordering party for SAM when all the other manufacturers abandoned the company for several years. The group refuses to take responsibility for a bankruptcy made inevitable, according to him, by strategic errors, investments on the part of management and successive shareholders. And to recall that the group has already provided direct financial support of 42 million euros to SAM. In recent months in particular, it is the French manufacturer who made up the operating losses, estimated between one and two million euros, the time for the protagonists of the case to find a viable buyer for the company …

Last Friday, SAM employees made the trip to Toulouse for the decisive hearing at the commercial court. The latter then gave Renault five days to position itself in the case, confirming or not the order book of this industrial site of which he is the sole customer (Credits: Rémi Benoit).

A politically explosive dossier

Beyond this specific case, Renault wants to free itself from government pressure on eminently political issues. It turns out that the SAM case comes at an extremely critical time for suppliers whose treasuries are straining. The semiconductor crisis has cut the market by about a quarter of automobile production … The impact on the industry is relentless. And the situation should worsen in the coming months with the rise in the price of raw materials. Finally, the future of foundries is clearly in question at a time when the electric car is booming. This technology requires four times less ferrous metals than a thermal car.

At the same time, the government is walking on eggshells. Six months before the presidential election, the government cannot afford an industrial tragedy that could be exploited by the opposition.

Renault, the old management

Except that the State has its habits at Renault. He remains the largest shareholder in the automotive group (15% of the shares), and he guaranteed a gigantic loan (5 billion euros) during the health crisis. In addition, state interference in Renault’s affairs is not new. The old Régie still remains largely under state influence. Already Carlos Ghosn, the former CEO, complained regularly. The climax of this interference had been the government’s raid on capital to impose double voting rights for long-term shareholders against management’s advice.

Automotive: can we still save French foundries?

The then Minister of the Economy, Emmanuel Macron, also urged Carlos Ghosn to buy the rest of Nissan’s capital to take control of it definitively. Something that Carlos Ghosn had opposed with all his might. The question of a factory closure was not possible either … Unlike a PSA which had closed its Aulnay-Sous-Bois site, despite the emergency support plan initiated by the State to save it from bankruptcy.

The other priority: saving Renault …

Luca de Meo, formerly of the Volkswagen group, was not used to this kind of relationship with his first shareholder. Of course, when he was boss of Seat, he had to make pledges to the Spanish government on Seat’s industrial footprint on the territory. But from there to vouching for the rest of the industry …

Especially since Renault has already committed to several issues such as the reconversion of the Flins site, the sustainability of which was not won. The state is also waiting for the group to follow through on its promise to participate in the ACC project, the electric battery manufacturing joint venture founded by Stellantis and Total, and recently joined by Daimler. Its participation was one of the conditions set by the State for the granting of the guaranteed loan. Finally, Renault has just announced its support for the project to take over Alvance Aluminum Wheels, in the Indre, by the Saint-Jean Industries Group.

“This is the first time he’s found himself in the situation where he has to say no“, we recognize internally. The stake is to stop this mechanism judged”paternalistic“. Luca de Meo can count on a Jean-Dominique Senard, president of the Renault group, more experienced in these power games.

Foundry SAM, the story of a long agony: what happened in Aveyron?

Because Renault believes it has other hot topics on the fire such as the recovery of its own group. After the fall of Carlos Ghosn and two years of financial and commercial crisis, it is imperative to resume the train of sectoral transformation which is going at full speed: electrification, connectivity, repositioning of brands, software … The investments required are colossal, and the job challenges are no less so.