France and Germany reached an agreement to bolster their auto industry
which was hard hit by the global economic crisis, French President Nicolas
Sarkozy said yesterday following his meeting with Germany Chancellor Angela
Merkel.
"What is sure is that we won't let our auto industry down." said Sarkozy.
The two leaders agreed during the talks that coordinated action was important
for the EU countries. "We want to react with speed and with force to relaunch
the economy" in each country but coordinated, Sarkozy said.
"What do we want, madam Merkel and I... To keep our industries in Europe
...to defend European industry." the president said. "We want to defend European
industry by helping it innovate, through research and technology."
Sarkozy noted that a US$25 billion loan for US automakers could leave
European car manufacturers at a disadvantage. He has called on the EU to help
its auto industry after US plans to grant loans to the country's carmakers.
New car sales in Europe sharply decreased 14.5 percent in October, according
to the European automakers association ACEA.
The French workers in auto industry account for 10 percent of the country's
working population. Two main automakers in France --Renault and PSA Peugeot
Citroen -- have been forced to cut thousands of jobs in response to plunging
demand.
A French media reported France was looking for a plan to support its car
industry as part of its 20 billion euros (some US$25.55 billion) strategic
investment fund.
