Automakers of the whole world go through hard times and the only way of salvation is government help. While American Big Three asks for more and more from Washington DC, Swedish government has already agreed to help Volvo and Saab with their development. A few days ago French politicians approved their bailout program too.

As soon as French automakers Renault and PSA Peugeot Citroën agreed to keep the factories in the country and provide jobs for French citizens, the government granted a $11.8 billion low-interest bailout to help them out.

Each manufacturer is going to receive $3.9 billion in loans, their auto-financing subsidiaries will get $1.3 billion each for the consumer credit. Besides there will be another $785 million for French auto suppliers and $640 million will go to Renault Trucks owned by Volvo AB.

Government money is going to help Renault to design and produce five new models of vehicles and a new engine by 2012. Since damand on fuel-efficient autos is high the manufacturer also plans to use loan money on all-electric car development.

PSA Peugeot Citroën has similar plans: soon it is going to introduce five new vehicles and its design team is going to work at the new generation models: electric autos and plug-in hybrids.