PSA and Renault will receive support from the governmentMarch 19, 2020
The French government promises to support two major French automakers PSA and Renault in these very difficult times for them.
French car groups can count on loan guarantees and deferred payments on outstanding accounts. Earlier this week, France announced that it would offer a package of measures worth 300 billion euros to save the economy. Most of this amount is intended for small entrepreneurs, but now the government has promised that automakers will also be eligible for assistance.
“The situation is clear, we cannot allow the disappearance of industrial French icons,” said French Minister of Finance Bruno Le Mer.
The fact that the automotive industry in France is seriously affected by the coronavirus, of course, will not surprise those who regularly visit our site, as in the last few days we have been covering events related to the shutdown of production and the closure of factories. PSA, which includes Peugeot, Citroen, DS and Opel, was already forced to close all of its European production facilities until at least March 27th. Production at Renault is also stopped.
By the way, the interest in their carmakers in the French state is quite justified: in PSA, the share of France is 14%, in Renault – 15%. The foreign publication reports that the government continues to use every opportunity when it comes to helping large companies. Therefore, increasing the proportion may also be an option.
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