PARIS (AP) -- Shares in Renault SA rose Monday after a top French official said the government could raise its ownership in French car makers as part of measures to help the auto industry.
In an interview in daily newspaper Le Figaro, Luc Chatel, France's junior minister for industry said the government could lift its stake in car makers in exchange for financial aid.
"Car makers don't necessarily need equity, but in exchange for our financial support, taking a stake could, in certain cases" be considered, Chatel said.
Renault shares rose as much as 4.8 percent in early Paris trading. Mid-morning, the stock was up 3.6 percent at euro17.21 ($22.84). Rival French car maker PSA Peugeot Citroen shares were up 1.9 percent at euro13.81.
The French government already owns 15 percent of Renault.
Representatives of French car makers, suppliers, labor unions and the government are to meet Tuesday to discuss how to aid the car sector, which employs 10 percent of the French work force.
In the interview, Chatel said possible measures to support the industry include loan guarantees and convertible bonds. In exchange, the car sector will be required to pledge to keep production in France and give up dividend payments to shareholders.