France to help car parts suppliers

Article reports that France is considering requiring carmakers to commit to buying specific volumes of parts and services from local suppliers as part of a government aid package for the industry, January 2009. According to people familiar with the matter, Nicolas Sarkozy, the President, wants Peugeot and Renault to help support the fragile network of domestic component suppliers and subcontractors in return for soft loans and loan guarantees.

ESO: Background information: French car industry to get up to €6bn state aid http://www.europeansources.info/record/french-car-industry-to-get-up-to-e6bn-state-aid/

---