AUTO INDUSTRY

French govt pledges up to €6 billion for carmakers

Meeting with car-manufacturing executives Tuesday, French Prime Minister Francois Fillon said his government was prepared to inject up to 6 billion euros of state funds to help the ailing industry weather the financial crisis.

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AFP - Struggling French carmakers will get up to six billion euros (7.7 billion dollars) of state aid to help the key industry survive the financial crisis, the prime minister said Tuesday.

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.

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