Bank Of Baku

Peugeot Citroen and Renault get government aid

Peugeot Citroen and Renault get government aid
# 10 February 2009 10:42 (UTC +04:00)
Baku. Nijat Mustafayev – APA-Economics. The French government will lend 3 billion euros ($3.9 billion) apiece to Renault SA and PSA Peugeot Citroen SA to help them cope with the sharp drop in demand under a 7.5 billion euro rescue package unveiled Monday.
In exchange, they had pledged to keep French sites open, President Nicolas Sarkozy has said.
The car industry is one of France’s biggest employers. Demand for cars has plummeted amid the global downturn.
Meanwhile, The European Commission said it would look very carefully at the French car bail-out.
The government loans, which will run over five years, will allow Renault and Peugeot-Citroen to "prepare calmly for the future".
France becomes the latest nation to inject money into its car industry to keep it afloat amid the sharpest drop in sales in more than a decade. The United States, Germany and Britain have committed cash to help their carmakers in exchange for various measures.
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