February 3, 2009 / 9:51 AM / 10 years ago

France could push carmakers to buy French parts: report

PARIS (Reuters) - French President Nicolas Sarkozy wants his country’s carmakers to commit to buying parts from French suppliers in exchange for aid measures, the Financial Times reported on Tuesday.

The French government has said it will pump up to 6 billion euros ($7.7 billion) of aid into the battered car industry and has already said car firms would have to pledge to protect French jobs and scrap bosses’ bonuses in return.

“France is considering requiring carmakers to commit to buying specific volumes of parts and services from local suppliers as part of a government aid package for the industry,” the FT said, citing people familiar with the matter.

The newspaper said Sarkozy wanted Renault (RENA.PA) and Peugeot (PEUP.PA), the country’s two biggest carmakers, to make the commitment in return for soft loans and loan guarantees.

The government has demanded increasingly strict conditions in exchange for aid to its troubled industries. The heads of the country’s main banks have already agreed to give up their annual bonuses for last year in exchange for a fresh batch of capital.

A spokesman for the Economy Ministry declined to comment on the FT report.

Reporting by Francois Murphy, editing by Will Waterman

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