The French government is preparing a €5 billion to €6 billion rescue plan for the country’s car industry hit by plunging demand, the credit crunch and longer-term decline in competitiveness.
Francois Fillon, the French prime minister, said yesterday that Paris intended to provide “massive” support for manufacturers, principally Renault and PSA Peugeot Citroën, as well as suppliers and distributors in France.
The bulk of the money is likely to come in the form of soft loans, for which France will need the approval of the European Commission.
Mr Fillon said that state aid to Europe’s car industry had to be ”totally co-ordinated” at an EU level, particularly on the issue of loans.
But he expressed growing French frustration with the length of the European Commission’s approval processes, saying that Paris was not prepared to wait for the 10 weeks it took Brussels to sign off on France’s bank bail-out plan last year.