Volvo Group says no to French loan for Renault

Sweden’s Volvo Group has rejected a loan from the French government designed to help the truck maker’s troubled Renault Trucks subsidiary survive the current economic crisis.

In announcing the decision on Tuesday, the Swedish truck maker cited what it considered unacceptable conditions.

“The alleged conditions set forth by the French government to the French car industry… are such that we will not accept them,” Mårten Wikforss, a spokesman for the group, told AFP, referring to France’s plan announced Monday.

“With the loans it seems it’s not possible to get any new job cuts or close any factory,” Wikforss said.

“Conditions like that we will not adhere to.”

French President Nicolas Sarkozy on Monday announced state loans of almost €8 billion (more than $10 billion) for French carmakers, in exchange for pledges to keep jobs and assembly lines in France.

Sarkozy said that under the plan Renault Trucks would receive half a billion euros. French national champions Renault and Peugeot Citroen will each receive loans of €3 billion over five years.