Peugeot resists plant guarantees

PSA Peugeot Citroen, Europe's second-largest carmaker, said it will resist demands that it promise not to close French factories in exchange for government aid.

"While there are no current plans to close any French plants, we don't see any reason to give long-term commitments on our strategy to the government," Hugues Dufour, a spokesman for the Paris-based company, said yesterday.

Peugeot and smaller domestic rival Renault SA are seeking government help after European car sales fell the most in 15 years in 2008 on the economic slowdown and tighter credit. In exchange, the carmakers must "commit themselves to maintaining industrial sites in France", Industry Minister Luc Chatel said, according to French daily Le Figaro, echoing comments by President Nicolas Sarkozy.