France plans to save car industry by going green

[July 25, 2012]  PARIS (AP) -- The French government has unveiled a plan to prop up the struggling auto industry, which is threatening to eliminate thousands of jobs.

Wednesday's plan focuses on making France a center for production of environmentally friendly cars. It includes offering incentives to French consumers who buy electric or hybrid cars. The plan unlocks some euro350 million ($420 million) for companies investing in such technology.

It offers another euro860 million for small companies and subcontractors to upgrade and modernize their factories and promises to create an institute for automobile research.

The plan is part of a grand scheme by President Francois Hollande's administration to keep and lure manufacturing jobs to France -- the so-called re-industrialization of the country. It comes as Europe's auto industry is struggling under the weight of over-supply.

[Associated Press]

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