France considers giving financial aid to local car industry

Article by Anita Panait, on June 16, 2012

The French government mulls providing financial support to the auto industry, according to Industry Minister Arnaud Montebourg, whose recent statement was in response to a call for funding from local carmaker Renault. Renault and fellow French carmaker PSA/Peugeot-Citroen are currently having overcapacity problems as demand for new vehicles in Europe dwindles.

Renault and PSA posted 21 percent and 14 percent drops in sales respectively for the January to April 2012 period, according to data from industry association ACEA. Carlos Tavares, Renault’s Chief Operating Officer, remarked that he would welcome "any kind of measure of support,” adding that the company is open and in favor of such a step.

The financial support for Renault could come in the form of incentives for new car buyers or tax breaks for more fuel-efficient vehicles. Investors welcomed Montebourg's comment, as PSA shares gained as much as 1.72 percent in Paris trading. PSA shares dived to 23-year low yesterday on worries about vehicle demand in Europe. Peugeot is the continent’s No. 2 carmaker in terms of sales.

Topics: france

If you liked the article, share on:


Login or Create new account to add a comment!


Aston Martin and Red Bull Racing teamed up for the first time in creating what looks like one of the most ferocious beasts in history. The British car manufacturer has...
by - October 24, 2016
German premium carmaker Audi is reportedly planning to buy back around 25,000 Audi Q7 SUVs powered by its 3.0-liter V6 TDI engine in the United States. The buyback should compensate...
by - October 24, 2016
Wondering what the Fantasy Gift in Neiman Marcus’ annual Christmas Book this year could be? If you are generous enough to give others or yourself this special present, then behold...
by - October 24, 2016
It wasn’t too long ago when Maserati took the wraps off what appears to be the most gorgeous concept coupe ever made. The Alfieri coupe premiered at the 2014 Geneva...
by - October 23, 2016
Many have been excited with the impending arrival of the next-generation Jeep Wrangler and the new 2019 Jeep Grand Wagoneer, which is slated to be the brand’s new range-topping model....
by - October 21, 2016