France's Socialist President Offers "Buy French" Plan
Newly elected French socialist President Francois Hollande told GM’s partner PSA Peugeot Citroen to renegotiate a plan to lay off 8,000 workers. However, Hollande admitted he could not halt Peugeot. Hollande promised government money to “encourage consumers to purchase French-made, environmentally friendly cars,” Reuters reports. Soon he will admit he cannot do that either. The “French made” part is sure to get his government in trouble with the EU.
According to the report, Hollande ruled out another round of cash for clunkers. The past one, introduced during the 2009 financial crisis “had cost the taxpayer dearly and had often been spent on foreign-made vehicles,” Reuters quotes Hollande.
Bloomberg reports that the French government will “announce measures on July 25 to boost French car sales and prop up the entire auto sector.”
No details on the support plan are available. “We will create a plan which costs as little as possible to the taxpayer and is as effective as possible,” Reuters quotes Hollande. Any attempts to favor one EU partner’s industry over other countries is sure to attract the attention of Brussels. Brussels is keeping an eye on Paris, due to past episodes of support for the French by the French.
Ignoring Brussels, at least initially, is a well-known populist ploy in Europe. When Brussels complains, the populists can wring their hands, blame the grinches in Brussels, shrug, and continue as if nothing happened.
Bertel Schmitt comes back to journalism after taking a 35 year break in advertising and marketing. He ran and owned advertising agencies in Duesseldorf, Germany, and New York City. Volkswagen A.G. was Bertel's most important corporate account. Schmitt's advertising and marketing career touched many corners of the industry with a special focus on automotive products and services. Since 2004, he lives in Japan and China with his wife <a href="http://www.tomokoandbertel.com"> Tomoko </a>. Bertel Schmitt is a founding board member of the <a href="http://www.offshoresuperseries.com"> Offshore Super Series </a>, an American offshore powerboat racing organization. He is co-owner of the racing team Typhoon.
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"Costs as little as possible and is effective as possible." Worthless. Literally worthless. What a stooge.
You are selling crude, because no one wants a refinery in their back yard and the oil companies don't figure its worth the fight. The newest refinery in Canada is from 1978. The oldest dates back to 1897. http://membernet.capp.ca/SHB/Sheet.asp?SectionID=7&SheetID=263 Even goofier is that most of the refineries in the above link are using foreign crude when there is Canadian crude available. But, not a lot different than Alaska crude being exported. (this was in response to blowfish)
No surprise. Everyone in the EU is equal except some are more equal than others. Germany and France have always thought that because they were part of the original six countries that started the EU they could run it as they pleased.
GM... In Australia it pulled exactly the same stunt.. " We will lay off workers and threaten to close plants unless you give money in the form of subsidies ". Ausralia's communist labor government capitulated two years ago and just a few weeks ago, GM was once again at the governments door,with much wringing of hands and cringing it was again asking for money . if governments do not play GMs game ( which it has been playing since post WW2) they will 'do a Saab' and simply walk away. France built some of it's greatest cars with world leading design and value under socilaist government leaders. Getting rid of GM and it's top heavy style of managenmt will possibly see a return to cars that people really want,not what GM thinks they want.