Europe's car industry faces tough times

The economic downturn is driving consumers away from new car purchases, forcing companies to downsize.

    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.

    SOURCE: Al Jazeera


    YOU MIGHT ALSO LIKE

    Revival: The Muslim Response to the Crusades

    Revival: The Muslim Response to the Crusades

    This part of 'The Crusades: An Arab Perspective' explores the birth of the Muslim revival in the face of the Crusades.

    Going undercover as a sex worker

    Going undercover as a sex worker

    A photojournalist describes how she posed as a prostitute to follow the trade in human flesh.

    Africa is not poor, we are stealing its wealth

    Africa is not poor, we are stealing its wealth

    It's time to change the way we talk and think about Africa.