Despite a rough few years for Renault, which is now struggling to return to profitability amid the coronavirus crisis, its new CEO is predicting a "surprise turnaround."

PSA CEO Carlos Tavares dismissed a call to revisit the terms of the automaker's merger agreement with Fiat Chrysler, saying the "time has not come to discuss this issue."

Automakers are trying to align their production to new hygiene measures, uncertain demand and the need to reduce inventories that swelled under coronavirus lockdowns.

The EU's competition authorities are said to be scrutinizing PSA's and Fiat Chrysler's European van market share ahead of their pending merger. The automakers have been collaborating on vans for decades.

France will increase the state bonus for consumers buying electric cars to 7,000 euros ($7,680) from 6,000 euros as part of its aid to the country's auto sector, President Emmanuel Macron said.

A factory in Dieppe that builds the Alpine sports car could be closed and the automaker's plant in Flins that makes the Zoe EV and Nissan Micra could be converted to other uses, according to French media reports.

European car buyers still want minicars, for their ease of parking, low cost and fuel efficiency. But automakers say new emissions rules that require costly modifications are making them economically unfeasible. So, how can the key entry-level segment be saved?

The supplier confirmed it was suspending 2020 guidance because of the uncertainty caused by the coronavirus crisis, which has shuttered factories and showrooms in Valeo's major markets.

Factories have been dormant for more than a month amid coronavirus lockdowns.

Aid from the French government other than for salaries during the coronavirus crisis could complicate the pending merger between the two automakers.

The automaker's plant in northern France, where it builds the Yaris small car, was shut down for five weeks because of the coronavirus outbreak. Production will be on a limited basis with numerous safety precautions in place.

The brand, with a limited lineup, was a late entrant in China, where it faced stiff competition from domestic automakers in the mid-priced segments.

The supplier said it would also cut executive pay and drastically reduce nonessential investments to conserve cash due to the coronavirus pandemic.

The French automaker is ending sales of conventional passenger cars in China and will focus instead on electric vehicles and light commercial vehicles, as part of a global realignment underway with Japanese alliance partners Nissan and Mitsubishi.

Renault Chairman Jean-Dominique Senard and Nissan CEO Makoto Uchida said in an interview with The Wall Street Journal that the three-year strategic plans for the automakers and alliance member Mitsubishi were needed to restore investors’ confidence.