FRANCE: EC grants PSA bank temporary guarantee to "avoid contagion" effect
PSA Peugeot Citroen's banking division has received temporary authorisation from the European Commission (EC) for France to guarantee EUR1.2bn (US$1.6bn) to avoid any "contagion" to the country's banking system.
Approval of the short-term measure is subject however, to PSA presenting a restructuring plan to the Commission, which includes the viability of Banque PSA Finance.
"The Commission considered granting of this guarantee was necessary to allow Banque PSA access to the market and to avoid any contagion effect on the French banking system, which would affect the cost of bank financing," said an EC statement.
"Commission guidelines concerning State aid given to banks during the crisis, mean the Commission can authorise rescue help for a six-month period in order to preserve financial stability."
The EC adds this aid will benefit not only Banque PSA Finance, but also the PSA Group as a whole.
Based on PSA's restructuring plan, the EC will issue a final decision on the aid granted.
The media days for the 2013 Frankfurt Internationale Automobil-Ausstellung (IAA) are 10 & 11 September. Each of the following vehicles is a world premiere at the show....
Iran Khodro (IKCO) says it is hopeful Iran's recent election of a new President will allow more partners - as well as its old Renault and Peugeot business allies - to have full operations in the count...
As widely rumoured, Paul Willcox has been confirmed as managing director of Volkswagen Group (UK), taking over from Simon Thomas who leaves the UK on 1 September 2013 to take up a global marketing rol...
New car sales in France nudged up 0.9% in July, prompting industry association CCFA to suggest that the collapse in sales was nearing an end. It was the first monthly increase since October 2011....
The long awaited free trade agreement between Colombia and Europe will start on 1 August with the first group of measures....
PSA has unveiled first half group revenue of EUR27.7bn (EUR36.8bn), down 3.8% compared to the same period last year, while automotive division revenue also fell 7.5% to EUR18.7bn....
PSA Peugeot Citroen has welcomed today's (30 July) news the European Commission (EC) has approved a French State guarantee of EUR7bn (US$9.3bn) covering bond issues by Banque PSA Finance until Decembe...
- What does 'Brexit' mean for the auto sector?
- Ford's future models and platforms
- The self-driving Volvo is getting closer
- And so Brexit begins - The Week That Was
- Arxan Technologies on cyber security - Q&A
- "No trade barriers" says FKG amid Brexit fallout
- Volkswagen scandal - Porsche plunges into the red
- Aston Martin lost GBP127.9m in 2015
- VDA warns against post-Brexit customs barriers
- Shocked CLEPA to discuss Brexit in Madrid
- Jaguar Land Rover: Adapting the original SUV & turning middle class Britishness into a business asset
- Tesla Motors, Inc. - Strategy and SWOT Report
- Automotive Megatrends
- PLDB - vehicle cycle plan database (12-month membership)
- Global light vehicle instrumentation and cockpits market - forecasts to 2030