France to unveil rescue plan for struggling car industry

PARIS (AP) — French President Emmanuel Macron is set to unveil on Tuesday new measures to rescue the country's car industry, which has been hammered by the virus lockdown and the resulting recession.

Macron tweeted that the government’s support for the national car industry, which includes brands like Peugeot-Citroen and Renault as well as parts suppliers, will increase “massively."

“This is a part of our economy, thousands of jobs,” he said.

Macron is meeting with carmakers and unions at the Elysee presidential palace on Tuesday morning. He will then visit supplier Valeo, which makes equipment for electric cars, at its factory in Etaples, in northern France, from where he will detail the rescue plan.

The issue is politically sensitive, since France is proud of its auto industry, which employs 400,000 people in the country and is a big part of its manufacturing sector. The government wants carmakers to develop innovative products in France and keep jobs in the country.

Finance Minister Bruno Le Maire said Monday that carmakers must commit to bringing back manufacturing to France in exchange for the support measures.

The aid is expected to include government subsidies for consumers to buy a battery-powered car as well as other incentives for people to scrap their old car and buy a lower-emissions model.

Auto sales in France fell by about 90% in April compared with a year earlier as showrooms were shut and factories suspended production. The country started easing restrictions since May 11 after two months of strict lockdowns.

The plan to support the industry comes at a crucial time for carmaker Renault, which came into the virus crisis in particularly bad shape.

Le Maire said Monday its survival is at stake and that the government would not require Renault...