France has no plans to support ailing car-maker Peugeot Citroen with a stake purchase, a source in the finance ministry has said. The comment came a day after Peugeot, suffering falling sales in a depressed European car market, highlighted the scale of its woes by taking a €4.1 billion writedown on the value of its plant and other automotive assets.

“An equity investment by the state in Peugeot is not on the agenda,” the source said yesterday.

Budget minister Jerome Cahuzac had said earlier France might consider investing in Peugeot.

“It’s possible. This company must not and cannot disappear, and we must do what it takes for this company to survive,” said Mr Cahuzac . – Reuters