French automotive suppliers may need help from local authorities as the industry continues to struggle into next year, according to government ministers.
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In a letter published in Sunday paper Le Journal du Dimanche, economy minister Christine Lagarde, industry minister Christian Estrosi and junior employment minister Laurent Wauquiez, said that the European car market, particularly in France, “should see a deterioriation, with a likely significant drop in sales for the second half of 2010.”
The policymaker added that the bleak outlook would last until the end of the first quarter of 2011.
They said that local authorities must urgently prepare to assist struggling parts suppliers in particular, by financing strategic reviews that target possible job losses as well as helping them tap a government backed supplier aid fund.
Reuters noted that French auto parts makers like Faurecia and Valeo are facing waning demand in Europe for cars after the end of scrapping incentive schemes.
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By GlobalDataFrench new passenger car sales for September were down by 8.1%, according to industry association CCFA.
