PARIS (Bloomberg) -- France is considering giving financial support to the auto industry, Industry Minister Arnaud Montebourg said in response to a call for aid from Renault.
"We're working in that direction," Montebourg said when asked about possible assistance for automakers at a press conference today in Paris.
Renault and rival PSA/Peugeot-Citroen are struggling with excess capacity as demand for new vehicles shrinks across Europe.
Renault's sales have dropped about 21 percent from January to April, compared with a 14 percent decline at PSA, according to data from industry association ACEA.
Renault Chief Operating Officer Carlos Tavares yesterday said he would welcome "any kind of measure of support."
"We are completely open and in favor of such a step," whether it takes the form of incentives for new car buyers or tax breaks for more fuel-efficient vehicles, he said at a press conference at Renault's logistics center near Paris.