Peugeot Sevelnord jobs 'not assured' amid GM deal

Besson told Radio Classique in an interview that during discussions with the head of PSA Peugeot Citroen, Philippe Varin, Varin had underscored the group's intention to reaffirm its industrial base in France.

"I received from president Varin a very clear intention to consolidate its industrial base in France, because that is in its interest, not to make the government or state happy. But I have no guarantees," the industry minister said.

Besson subsequently told AFP he was speaking specifically about the Sevelnord auto plant near Valenciennes, northern France, and not about PSA plants in general.

"For all the rest, yes we have guarantees," the minister said.

"The comments with Radio Classique only dealt with the case at Sevelnord" after 2017, he stressed.

Besson had been asked about guarantees that PSA directors might have given the government with respect to possible changes in the car maker's "industrial perimeter."

PSA Peugeot Citroen is the leading auto manufacturer in France.

Owing to excess production capacity in Europe, sector analysts believe it likely that some plants owned by Peugeot or GM's European brands Opel and Vauxhall will close as the two groups pursue an alliance unveiled last week.

Although the government owns no shares in Peugeot it closely tracks issues that could affect unemployment.

Besson told Radio Classique he did not want to paint a dark picture with respect to the potential consequences of an alliance with GM, noting that PSA exports one of every two autos that it makes in France.

He added that the car company, which has six major plants in France, makes almost 40 per cent of its investment and carries out 80 per cent of its research and development there.

Besson also said he had organised a meeting on Thursday to discuss the situation at Sevelnord, where workers are concerned about the end of a utility vehicle partnership with Fiat of Italy.