PSA Peugeot Citroen and Renault must collaborate more closely for the French automobile industry to gain a competitive advantage, former EADS CEO Louis Gallois said today.
Gallois, who recently delivered a controversial report outlining the weakness of the French economy and recommending ways to improve the country’s competitiveness, said PSA and Renault must work together to develop new technologies.
“There are very few projects in which Peugeot Citroen and Renault are associated, and that’s a pity,” Louis Gallois was quoted as saying at a conference. Former EADS boss observed that German carmakers are collaborating in the development of fuel cell technology for the auto sector, while French automakers aren’t.
Although Gallois said fuel cell technology is far from being ready for the roads, he warned French carmakers they could be left behind if they don’t involve themselves more seriously. “France can’t be absent from the electric vehicles powered by hydrogen,” Gallois said, who described the situation as being dangerous for French car manufacturers.
Both PSA Peugeot Citroen and Renault are being affected by a strong decline in car sales in France. Peugeot is burning 200 million euros in cash each month and has lost 819 million euros in the first six months of this year.