Renault and PSA Peugeot Citroen are happy kids that get desert even when pickings are slim.
French President Nicolas Sarkozy unveils his $33 billion stimulus plan for France, and wonder of wonders, French automakers are included. But then again, France’s automakers are not losing investments.
Mr. Sarkozy also hinted that if American automakers get a loan from Congress, French automakers might expect their Christmas present to be bigger.
A substantial portion of the $33 billion in France’s two-year stimulus plan is destined for the construction industry. Nearly half of the package will be injected straight into the economy as the government front loads tax credits and rebates.
Asides from the automakers themselves, Sarkozy also promised to aid auto parts suppliers. With such stringent credit these days, large purchases have become difficult for consumers and companies to finance. Nonetheless, the pie isn’t free. Sarkozy has warned that aid will be conditional, so long as companies maintain jobs and production in France.
France is also encouraging consumers to trade in older vehicles by providing a 1,000 euro bonus for trading in any car that is more than 10 years old for a low emission vehicle.
Our take? $33 billion might be a fraction of $700 billion, but it sounds like its being better spent in France.
via Detroit News