Renault to join Franco-German project promote an eco-friendly auto industry that is the future thing. This is just a small part of the big picture as they will work together to manufacture car batteries.
The COVID-19 has made the sustenance of industries controversial. Many industries are going through a sustenance issue that will not resolve anytime soon. Among those industries, automobile manufacturing has to face impact from the front. According to many experts, the automobile industry being labor-intensive from manufacturing to sales; would have to touch the ground. But the strategy by France has opened new avenues for an out-of-the-box solution to support depreciating economic functions.
As downsizing is happening on multiple levels in the automobile industry, so a mass level of reform is needed to address this issue. There are other plans in the pipeline for this automobile manufacturer Renault.
The Background
The government of France has identified the opportunity in adversity. The President of France has announced an 8 bn Euro rescue plan for the automobile industry (BBC News)
This investment will help France in becoming the hub of electric cars. The president said that he wants France to be the Top Producer of clean cars in Europe. The goal is to manufacture 1 million electric and hybrid cars for the next 5 years. Considering the situation of the economy across the globe, this decision will not only support the auto trading industry but the overall economic condition of France.
The Opportunity Tapped
Considering it to be a big opportunity, Renault has joined hands with Franco-German to be an active part of this economic activity. According to several automobiles news, Renault will get 5bn Euro loan, out of which Renault will invest in car batteries too. It will invest in research and development making electric and hybrid cars state of the art. While the French government has announced that a bonus of 3000 Euro is for people who upgrade to this less pollution car.
The Importance of Eco-friendly Cars
Eco-friendly cars will reduce environmental pollution that has an impact on health and immunity that has gone low since we are at home. As it consumes natural resources so less fossil fuel is produced. For those who buy a hybrid or electric vehicle, the greater gas mileage is attained. On a single fuel tank, long drives can easily be managed. Even because of being environmentally friendly like the government of France, other countries also offer tax rebates. So it saves money not only for car driving and maintenance by also an additional source of tax saving is there.
Verdict
Although the deal by France is not final, Renault needs to talk to the workforce and plant operators as several jobs were cut and a bit more was expected. But if Renault can cash this opportunity it will be able to sustain in these uncertain times. France will get back its top producer of electric and hybrid car position. It lost this position to Germany at end of the year 2019. When we say that Renault to Join Franco-German Project, it is just the beginning.
