Europe's car industry faces tough times
The economic downturn is driving consumers away from new car purchases, forcing companies to downsize.
Last Modified: 25 Oct 2012 17:40

The French government has bailed out Peugeot Citroen with a $9.1bn loan, and in Belgium and the UK, US carmaker Ford also announced factory closures.

Thursday saw talks between the French state and the carmaker Peugeot over the loan. In return for the bailout, the government wants a position on the firm's supervisory board alongside a workers' union representative, with the aim to avoid huge job cuts that will be all the more damaging with unemployment already over 10 per cent.

Ford confirmed it was planning to shut two British sites next year with the loss of at least 1,500 jobs.

Production of the transit van is being shifted to Turkey from Ford's Southampton plant in southern England.

Al Jazeera's Nadim Baba reports from Paris.


Al Jazeera
Topics in this article
Featured on Al Jazeera
Swathes of the British electorate continue to show discontent with all things European, including immigration.
Astronomers have captured images of primordial galaxies that helped light up the cosmos after the Big Bang.
Critics assail British photographer's portrayal of indigenous people, but he says he's highlighting their plight.
As Western stars re-release 1980s charity hit, many Africans say it's a demeaning relic that can do more harm than good.
No one convicted after 58 people gunned down in cold blood in 2009 in the country's worst political mass killing.
While hosting the World Internet Conference, China tries Tiananmen activist for leaking 'state secrets' to US website.
Once staunchly anti-immigrant, some observers say the conservative US state could lead the way in documenting migrants.
NGOs say women without formal documentation are being imprisoned after giving birth in Malaysia.
Public stripping and assault of woman and rival protests thereafter highlight Kenya's gender-relations divide.