PARIS – A move by the French government to strategically support the revival of the local auto industry raises a red flag in Europe, and the European Commission is launching an inquest. France, which owns about 15% of Renault, decided to step in after a government study last year concluded PSA Peugeot Citroen had to close its Paris-area plant in Aulnay to survive. The government helped PSA’s bank with a loan guarantee to keep the auto maker’s other factories open and ...

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