Juppe Visits Pavilions, Prefers French Models

I'm very pleased to see here that the French carmakers are on the ball. I was very drawn by what I saw at the components companies which are among the best in the world, Juppe said.

The technological breakthroughs we've seen today make me feel confident, said the Prime Minister, who decided last week not to extend a year-long state rebate programme that had underpinned the sluggish French car market. The heads of France's biggest car and components companies, Renault, PSA Peugeot Citroen and Michelin, showed off their latest products to the Prime Minister. I had the impression he was quite fascinated by what he saw, said Renault chairman Louis Schweitzer.

 

I can't say I sold him a car today. From that point of view, maybe his visit hasn't been immediately profitable, said PSA Peugeot Citroen chairman Jacques Calvet. But we may have a shot with the coupe, the newest Peugeot 406, he said. Although Juppe declined to comment on the prospects for further assistance for the car industry, industry minister Franck Borotra said the government was studying ways to help the sector prepare for the future.

The French car industry faces the total liberalisation of the market on January 1, 2000, and must adapt its production and products to be totally competitive, he said.

The European Union is scheduled to lift the barriers protecting its auto industry at the end of the decade.

We have three years to prepare for total competition, and if the state can help the car industry adapt, it will because it is convinced of the sector's importance, he said.

The French car industry has been battered over the past year by a price war, currency turmoil and high costs. Renault expects to lose money this year, while the more robust Peugeot group saw its first-half profits slashed by half.

Car company officials say they are counting on new models, displayed at the show which runs to October 13, to attract reluctant customers.

Juppe looked bemused as he sat at the wheel of several showroom models and tested the latest equipment.

He described Fiat's much-admired Alfa Romeo Nuvola concept car as a dream, but when asked which of the cars at the show he preferred, Juppe replied, I generally buy French.