France wants to link state aid to domestic car production

The French government, through Finance Minister Bruno Le Maire, said on Monday that car groups PSA and Groupe Renault can count on state aid. However, there must be something in return, such as transferring production from abroad to France itself.

Le Maire will meet with representatives of PSA and Groupe Renault this week for a recovery plan. Clarity is expected in August at the earliest. It is clear, however, that Le Maire will not provide billions in support without conditions. “We are ready to help you, to introduce purchase subsidies and to improve the competitiveness of the French production sites. In return, we want to hear what the plans for a return of French production are. Only in this way will we build a stronger French car industry. “

Not easy

This will not be easy, as both PSA and Groupe Renault have car factories and assembly centers all over the world. The factories for auto parts are not included. PSA has car factories in Europe in Hungary, Spain, Poland, Portugal and Slovenia. The acquisition of Opel has added locations in Germany and the United Kingdom. In addition, there are parts of the production line in Austria.

Groupe Renault has car factories in Portugal, Spain, Slovenia and Turkey. The Clio, the manufacturer’s success number, is being built in the latter two countries. Production is also carried out in Romania and Russia through subsidiaries Dacia and Lada.

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