By Laurence Frost
Dec. 6 (Bloomberg) -- PSA Peugeot Citroen and Renault SA, France’s biggest carmakers, were asked by the government to avoid plant closures in exchange for subsidies to boost car sales, Le Monde reported today.
While Renault repeated Dec. 4 that there was “no question” of closing French factories, Peugeot has resisted giving such a clear commitment, the daily newspaper reported on its Web site, citing an unnamed government official.
The government is pressing the demand in exchange for a 500 million-euro ($630 million) auto-sector stimulus package announced the same day, Le Monde said. The new measures include a 1,000-euro incentive for consumers who scrap old cars and buy new ones, as well as cheap loans for carmakers’ financing arms.
Industry Minister Luc Chatel will meet Peugeot executives Dec. 8 to discuss the industry crisis, the paper said.
To contact the reporter on this story: Laurence Frost in Paris at lfrost4@bloomberg.net
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