Financial Times FT.com

France to help car parts suppliers

By Peggy Hollinger in Paris and John Reed in Detroit

Published: February 3 2009 00:40 | Last updated: February 3 2009 00:40

France is considering requiring carmakers to commit to buying specific volumes of parts and services from local suppliers as part of a government aid package for the industry, the Financial Times has learned.

According to people familiar with the matter, Nicolas Sarkozy, the president, wants Peugeot and Renault to help support the fragile network of domestic component suppliers and subcontractors in return for soft loans and loan guarantees.

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