French Carmakers to Receive $7.7 Billion in Rescue Plan

Renault, PSA Peugeot Citroen and their suppliers have dramatically cut production and shed thousands of jobs as they struggle to stay afloat.

Struggling French carmakers will get up to six billion euros (US$7.7 billion) of state aid to help the key industry survive the financial crisis, the prime minister said on Jan. 20.

Francois Fillon made the announcement at a meeting with executives from car manufacturing companies, parts suppliers and union leaders to agree on a broad plan dubbed a new "auto pact."

Facing collapsing demand, Renault, PSA Peugeot Citroen and their suppliers have dramatically cut production and shed thousands of jobs as they struggle to stay afloat in the global economic downturn.

Copyright Agence France-Presse, 2009

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