France and Germany reached an agreement to bolster their auto industry which was hard hit by the global economic crisis, French President Nicolas Sarkozy said on Monday following his meeting with Germany Chancellor Angela Merkel.
?"What is sure is that we won't let our auto industry down." said Sarkozy.
The two leaders agreed during the talks that coordinated action was important for the EU countries. "We want to react with speed and with force to relaunch the economy" in each country but coordinated, Sarkozy said.
"What do we want, madam Merkel and I? To keep our industries in Europe ...to defend European industry." the president said. "We want to defend European industry by helping it innovate, through research and technology."
Sarkozy noted that a 25 billion U.S. dollars loan for U.S. automakers could leave European car manufacturers at a disadvantage. He has called on the EU to help its auto industry after U.S. plans to grant loans to the country's carmakers.
New car sales in Europe sharply decreased 14.5 percent in October, according to the European automakers association ACEA.
The French workers in auto industry account for 10 percent of the country's working population. Two main automakers in France --Renault and PSA Peugeot Citroen -- have been forced to cut thousands of jobs in response to plunging demand.
A French media reported France was looking for a plan to support its car industry as part of its 20 billion euros (some 25.55 billion U.S. dollars) strategic investment fund.
(Xinhua News Agency November 25, 2008)
