France to unveil aid program for the automotive industry by the end of June

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The French Minister of Finance, Bruno Le Maire, announced at the end of June government support measures for the automotive and aeronautical sectors.

The aid would come after the government promised Thursday 18 billion euros (19.4 billion dollars) to support the tourism sector, which Le Maire desperately needed because restaurants and hotels were among the hardest-hit businesses affected by the coronavirus pandemic.

“We will do it for other sectors that have been hit hard, such as the automotive and aeronautics industries,” he said in an interview with BFM TV. “Air France was in danger of disappearing, and parts of the automotive industry are also threatened. with disappear. “

(Read also: the French car market fell 88.8% in April while the foreclosure hit sales)

The French government has decided to revive the economy after relaxing the lockout restrictions, including allowing more stores and some schools to reopen. While Air France-KLM and automaker Renault SA have obtained billions of government-backed loan guarantees, their operations remain depressed. The aircraft manufacturer Airbus SE, which has avoided direct state support, plans to cut jobs.

“The rebound is progressive; it is there, but it is progressive, “said Le Maire, adding that consumers should be encouraged to go out and spend money, especially by taking a vacation in France this summer.

(Read also: Renault is requesting a loan supported by the State to build a liquidity reserve in the middle of the coronavirus crisis)

He did not provide details on the type of support that would be given to the automotive and aeronautical industries, but he has said in the past that sales of electric cars could be encouraged. The French government holds stakes in Air France-KLM, Airbus, Renault and Peugeot PSA Group.

The story was published on a news agency wire without editing the text. Only the title has been changed.

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