Communication between the European Commission (EC) and French authorities is centring on “apparent contradictions” between two high-ranking industry politicians concerning subsidised auto loans.
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The French ministry of economy, industry and work is currently considering its response to concerns raised by the Competition Commission today (18 January) that subsidised car loans would not affect manufacturers’ freedom to pursue economic activity in the internal market.
“The commission will make sure this commitment is respected,” said EC competition spokesman Jonathan Todd, adding the body has written to the French authorities to clear up what it described as “the apparent contradiction” between statements made by industry minister Christian Estrosi and secretary of state for industry, Luc Chatel, last February.
Specifically the EC is questioning a supposed difference between the two industry politicians that hinge on Chatel’s assurances last year that aid to car manufacturers in particular would not impose any conditions of the location of their production facilities.
Renault – in which the French government has a 15% stake and to which it has lent EUR3bn (US$4.3bn) – today did not rule out shifting some of its future Clio production to its Bursa plant in Turkey.
Previous discussions between the French ministry of industry and the EC saw commissioner Neelie Kroes insisting the commission has “an obligation to to verify the February 2009 undertakings will still be respected and expects any misunderstanding can be quickly resolved.”
Estrosi had formerly indicated to the EC the French government’s wish for Renault to locate Clio production in France, in its capacity as a shareholder in the automaker, according to Todd.
However, the spokesman insisted: “The commission’s contacts with the French authorities are not related to the current discussion about whether Renault’s Clio model should be manufactured in France or Turkey.”
Calls to the ministry of economy, industry and work in Paris were not immediately returned.
