France is close to agreeing a deal to prop up PSA Peugeot Citroënby providing between €5bn and €7bn of financial guarantees to the ailing carmaker’s lending arm.
The rescue plan, which needs approval from Brussels and has already provoked protests from state shareholders in Germany’s Volkswagen, would be the most significant government intervention yet in the crisis engulfing many of Europe’s mass-market carmakers.
People close to the talks said the deal could be announced this week.
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