Renault secures €5 billion government-backed loan amid job losses, protests

The future of Renault is looking more secure after the automaker finalised a loan for €5 billion ($AUD 8.1 billion), thanks to the French government stepping-in as guarantor. The French government owns 15 per cent of Renault.

According to the Reuters news agency, five banks were involved in the deal to provide the credit facility to the French car manufacturer.

In May, France's finance minister Bruno Le Maire publicly warned on Europe 1 radio that Renault "could disappear" if a deal could not be reached in time.

Last week Renault warned 15,000 jobs would be cut globally, sparking protests at the automaker's factories in France.

It's possible that the company-wide job cuts were announced to satisfy the banks ahead of the loan being finalised. Nearly a third of the total job losses will be in France.

This comes at the same time Renault and Nissan decided to put their plans for a merger on hiatus, with Nissan citing a lack of equitable productivity from their partner.

MORE: Renault news, reviews, comparisons and videos
MORE: Nissan news, reviews, comparisons and videos