The French government said it could take stakes in carmakers in exchange for financial assistance as Brusses predicted a "deep and protracted recession" in Europe.

Paris will demand an equity stake in exchange for funds, and limits on dividends, Luc Chatel, the industry minister, told Le Figaro.

"The situation is serious. We're looking at every possibility, but the plan will not be a gift," he said. "Manufacturers will have to preserve their industrial sites in France. We're not government that gives help while allowing factories to be closed."

The government is to meet car industry representatives Tuesday to detail a help plan.

President Nicolas Sarkozy earlier promised that France would put "a lot of money" into aid for the car industry, which is one of France's biggest employers.

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