The French government has approved a sweeping bailout program that will provide nearly $12 billion in low-interest loans and loan guarantees to the struggling French auto industry.

French automakers Renault and PSA Peugeot Citroën each will receive $3.9 billion in loans, while their auto-financing subsidiaries will receive $1.3 billion each in loan guarantees to help free up consumer credit. In addition, French auto suppliers will get $785 million in loans, while Renault Trucks, owned by Sweden's Volvo AB, will receive $640 million.

In return, the automakers agreed to maintain factories and jobs in France.

Renault boss Carlos Ghosn said: 'In light of the exceptional crisis impacting our entire industry, access to credit was indispensable for supporting our activity and that of the automotive industry. It will also enable us to pursue our developments and investments in sustainable mobility.'

Ghosn said Renault plans to launch five new models and a new engine in France by late 2012 and will develop a full-electric vehicle in France 'once the necessary profitability conditions are in place.'

PSA Peugeot Citroën said it plans to introduce at least five new models in France and is continuing research and development on such advanced technologies as EVs, plug-in hybrids and stop-start systems.