French President Nicolas Sarkozy's desire to help the auto industry in France is raising the hackles of his European
neighbors, who think his moves are protectionist.
Renault SA and Peugeot Citroen will split €6 billion ($7.7 billion) in loans, though Renault chief Carlos Ghosn says that number may have to
quadruple. In return for the $7.7 billion, the companies cannot lay off workers or close plants.
As IndustryWeek reports, Sarkozy said, "I want us to
stop outsourcing and, if possible, in-source. If we give money to the auto industry to restructure itself, it's not so we can hear about a new plant moving to the Czech Republic or wherever." Needless to say, more than a few people, including some
Swedes, were angered by those and other statements made by the French prez. In October, Sarkozy announced the creation of a
sovereign wealth fund to protect French companies from foreign investors.
Meanwhile the globalization of the industry rolls on. Japan's Nissan Motor Co. is looking to
strengthen ties with its 10-year alliance partner Renault by focusing on future investments in products, technology and support functions. In the U.S. Nissan (which announced
20,000 job cuts) is
seeking TARP money and plans to
open a car plant in St. Petersburg in May.
Nissan and Renault also have plans on a
far-reaching JV involving numerous governments and industries. -
Baz Hiralal
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