Restructuring Loan Approved for PSA Peugeot Citroen

Restructuring Loan Approved for PSA Peugeot Citroen

The EU commission has allowed the offer of £498m from the French Government to the French manufacturer Peugeot Citroen due to the fact that the loan does not contravene European State aid laws.

The French Government see the French Car Manufacturer as a vital component to the French economy itself. The French Government has already borrowed a significant amount of money to the firm last Autumn and yet the firm failed to get back on track.

Peugeot Citroen have struggled as of late due to the lack of demand within the European economy and therefore planned to close one of its main production plants within France, However, the French Government insisted that rather than close the plant why don't they just borrow the money. Since then things of gone from bad to worse and the firm nearly sold out to Vauxhall owners General Motors.

This new restructuring plan for Peugeot Citroen will allow certain members of the French organisation to step in and help with the complete reconstruction of the firms operation. Peugeot and Citroen insist that no changes and alterations will be made to the new line up and no drastic decisions will be made to scrap existing models such as the C4 Picasso or design new ones.

The French Government will however, be keen on the developments of an electrically powered vehicle and reducing the CO2 levels on existing models. The UK Government have encouraged the purchase of an electrically powered vehicle or a vehicle with low emissions through the form of a funded grant or the lack of road tax.

It has been well documented over the past 12 months that certain manufacturers who depend on sales within Europe have struggled. The current condition of the European Car market has left certain manufacturers such as Fiat and Peugeot Citroen.