EU Approves France's Bailout of PSA Peugeot Citroen
As you all know, Europe's second largest automaker is also under threat of closing. PSA Peugeot Citroen has taken steps towards streamlining its lineup of models and cutting jobs that aren't needed, but it may all be too little too late if the French government doesn't offer support.
Sadly, the French can't simply decide a bailout plan in the senate, as any state funding of a private company is not far towards the other European carmakers. Thankfully, the European Union has allowed France to provide PSA Peugeot Citroen with up to €1.2 ($1.6) billion in loans over a maximum of three years.
In return for state aid, PSA will propose a restructuring plan that will hopefully keep it away from the government funding.
Most of the French giant's hopes are pinned on their new partnership with General Motors. The two companies will develop platforms together, share production facilities and jointly purchase materials to reduce costs.