Today, the French government announced a support package for the auto industry. The specific initiatives include:
- €6.5 billion in financing to the auto makers (€3 billion to each of Renault and Peugeot-Citroën and €500 million to Renault Truck, a subsidiary of Volvo) to aid development programs for manufacturers. These loans will be for five years at 6% interest.
- Up to €1 billion of financing in 2008, and up to an additional €1 billion of financing in 2009, to the finance arms of Renault and Peugeot-Citroën in order to fund consumer loans to purchase vehicles.
- Up to €600 million of loan guarantees for auto suppliers.
- A two-year program aimed at developing best practices in the industry.
- A fund aimed at modernizing the automotive industry.
- An initiative to preserve employment and job skills in the industry.
- A research program for new vehicle technologies.
France’s Secretary of State for Industry will appoint someone to oversee the program.