France May Tax Peugeot and Renault Competitors, Tribune Reports

France may introduce a tax on large luxury cars to help slow a drop in demand for smaller models built in the country, La Tribune reported, citing a study commissioned by elected officials of towns with auto plants.

The proposal presents the idea as intended to protect the environment by favoring smaller, less-polluting cars, though it may be a form of protectionism helping PSA Peugeot Citroen (UG) and Renault SA (RNO), as its goal is stated as “winning back 500,000 vehicles a year,” the French newspaper said.

To contact the reporter on this story: Andrea Rothman in Toulouse, France, at aerothman@bloomberg.net

To contact the editor responsible for this story: Benedikt Kammel at bkammel@bloomberg.net

Bloomberg reserves the right to remove comments but is under no obligation to do so, or to explain individual moderation decisions.

Please enable JavaScript to view the comments powered by Disqus.