The French government yesterday provided some
6 billion euros to
car markers. The decision came following yesterday’s news
that Carlos Ghosn, chief executive of
Renault had warned of a Europe-wide auto industry collapse
without rapid intervention.
Ghosn, who is also president of the European
carmaker body ACEA, claimed that a brutal, global and
exceptionally large scale crisis was underfoot. He even drew
comparison with the Great Depression of 1929.
In order to access the fund,
car companies must preserve jobs, plants and component
suppliers within France. The crisis has extended to premium car
group
BMW, who will introduce short-time working for some 26,000
staff at four German plants.
The
car finance arms of
major car companies throughout Europe are suffering
particularly badly in the crisis, and these are expected to be the
recipients of much of the aid on offer.
