French President Nicolas Sarkozy said today that his government is lending France's two large auto makers, Renault and PSA Peugeot Citroen, 6 billion euros (8.16 billion dollars) to see them through the economic crisis, according to DPA. In exchange for the aid, the two companies committed themselves "not to shut any factories for the duration of the loan and to do everything to prevent redundancies," Sarkozy said after meeting with auto industry leaders. Renault and Peugeot are each to receive 3 billion euros over five years, at an interest rate of 6 per cent, which is less than half of what banks would have charged. In addition, the car makers are urged to use the money to "invest massively ... in order to develop vehicles with low CO2 emission," Sarkozy said. "To improve the combustion engine first, then to develop rechargeable electric motors."
