Renault’s engine subcontractor on the brink of collapse

The subcontractor of the Renault F1 Team: the Franco-Québécois group Mécachrome, which assembles Renault engines in Formula 1 and in the GP2 Series, has just been saved from bankruptcy.

Indeed, the Franco-Quebec group was hit hard by the international financial crisis and although the group had a full order book, bankruptcy was imminent.

It would have been a catastrophe for Renault F1, which has always relied on Mécachrome to assemble its Formula 1 engines. Mécachrome is a historic subcontractor of the French manufacturer, and losing it now would have hurt Renault.

But fortunately, the Commercial Court of Tours has granted a sum of 30 million euros for its safeguard plan, which will be used to restructure the company, safeguard 1600 jobs in France, and give the company a breath of fresh air.

In an official statement, the president of Mécachrome, Christian Jacqmin, declared: “These funds will allow us to ensure the stability of Mecachrome while it undergoes judicial reorganization. We are pleased to have obtained the support of our funders, which allows us to complete this important stage of our restructuring process.”

Mécachrome also works for the manufacturer Volvo and in aeronautics for the European group Airbus. It is therefore a sword of Damocles hanging over its head, which bodes well for the holiday season for this group. Renault F1 no longer has any concerns regarding its subcontractor.