Le Bailout: France Can't Rescue PSA Without An OK From Brussels

Bertel Schmitt
by Bertel Schmitt

The French government is asking the EU Commission to approve its bail-out of GM’s alliance partner PSA Peugeot Citroen, Reuters says with input from French daily Les Echos.

The rescue operation initially was called help for PSA’s bank, which would not require state aid approval from Brussels. Brussels did not buy the reasoning, called the 7-billion-euro ($9.2 billion) state loan guarantee restructuring aid and told the French government to ask for permission.

The process is expected to take about two months. What usually happens at the end of the process is that aid will be un-tied from obligations to keep jobs and suppliers in the country. Reuters also thinks that “a state aid probe by Brussels could ultimately increase the cost to Peugeot of the state loan guarantee and the 11.5 billion-euro refinancing deal to be finalized with creditors next month.”

Bertel Schmitt
Bertel Schmitt

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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 2 comments
  • Schmitt trigger Schmitt trigger on Jan 09, 2013

    The news coming from PSA are so depressing, that it makes GM news look like a fairy tale.

  • Onus Onus on Jan 09, 2013

    Goodbye PSA. I don't know much about your cars nor even been in one. But, i had seen a ton of them on my recent European trip.

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