PARIS: France has no plans to support ailing carmaker PSA Peugeot Citroen with a stake purchase, a source in the finance ministry said, cooling speculation of a state cash injection to help ease the company’s problems.
The comment came a day after PSA, suffering falling sales in a depressed European car market, highlighted the scale of its woes by taking a 4.1 billion euro ($ 5.5 billion) writedown on the value of its plant and other automotive assets.
“An equity investment by the state in Peugeot is not on the agenda,” the source said.
“The priority for the group is to pursue its recovery plan, to strengthen its alliance with General Motors and to continue its development.”
Although the writedown was a non-cash accounting item that does not affect the group’s liquidity or solvency, it reflected Europe’s worsening market outlook and prompted speculation the state might intervene.
Budget Minister Jerome Cahuzac had said earlier France might consider investing in Peugeot, helping send its shares higher.
“It’s possible,” Cahuzac told BFM Television.
“This company must not and cannot disappear and we must do what it takes for this company to survive.”
The stock reversed most of its initial gain and was up 0.2 percent at 5.883 euros by 1116 GMT.
France’s FSI sovereign-wealth fund is not working on any plan to invest in Peugeot, an FSI spokesman said.
Peugeot declined comment.
Unlike PSA’s domestic rival Renault, the French state has no holding in PSA. France nationalized Renault after World War Two and still holds a 15 percent stake.
Peugeot remained private and is 25 percent owned by the Peugeot family.
Traders and analysts said the size of the writedown was offset by the fact it was a non-cash charge and by speculation the state could support the company’s capital base.
“The (writedown) measure will not hit cash flows, nor will it affect liquidity or solvency,” a Paris-based trader said.
“It does however show that the outlook for a recovery in the European market is more pessimistic than it was six months ago.”
Any state investment in Peugeot would be a “last resort,” newspaper Liberation said, citing unnamed sources. Peugeot is one of the companies worst hit by Europe’s protracted sales slump. It is cutting 8,000 jobs and closing a factory to stem losses approaching 200 million euros a month. The company has pledged to return to breakeven late in 2014.
“The writedowns reflect Peugeot’s difficulties, namely that it concentrated too much on growing in Europe and ended up missing out on international growth and alliances,” said Harry Wolhandler, chief executive of Amilton Asset Management.
“We’re staying away from the stock for now both because of its financial situation and above all its strategic positioning.”
The Paris-based company said the writedown did not affect plans to reduce cash burn by half this year or its earlier 3 billion euro net debt forecast for the end of 2012.
France has no plan for Peugeot stake
France has no plan for Peugeot stake
Mapping Saudi soils to grow better crops
- Palm trees, root crops, and coastal plants reveal the land’s story
RIYADH: Saudi Arabia’s land tells stories written beneath the feet. From fertile plains and rugged highlands to vast deserts, the Kingdom’s diverse landscapes shape what can grow, where it grows, and how agriculture can thrive.
Alongside geography and climate, soil conditions play a decisive role in agricultural success. Understanding soil types across the Kingdom helps determine which crops can flourish and what interventions may be needed to sustain them.
In an interview with Arab News, Turki Almutairi, a senior environmental specialist at the National Afforestation Center under the National Center for Vegetation Cover Development and Combating Desertification, outlined the main soil types found across Saudi Arabia.
“The dominant soil in the Kingdom are sandy desert soils, alongside calcareous soils in the central region. Rocky and stony soils are present along mountainous and hilly landscapes,” he said.
“Alluvial soils are common in wadies (valleys), while saline and sodic soils are located in depressions (Sabkhas) and along coastlines. Pockets of clayed soils can be also found around few sites along the Kingdom.”
The Kingdom’s vast territory gives rise to unique soil characteristics in each region, enabling different crops to grow depending on local conditions.
“Soil is the growing medium for plants. The role of soil includes structural stabilization, providing nutrients and a communication medium for plants,” Basil Nasir, soil lead at engineering consultancy William Sale Partnership, told Arab News.
According to Nasir, assessing soil use is essential before determining whether it is fertile or infertile, as different soils support different plant types.
“The soil used for trees differs from the soil used for ornamental plants and from the soil used for aquatic plants. It varies according to the specific needs of each plant, and based on this, we determine what the soil requires and assess its fertility,” he said.
Nasir explained that soil characteristics are shaped by both physical and chemical components. In addition to water and air, mineral particles such as sand, silt and clay are key indicators of soil health. Organic matter, derived from plant and animal remains, forms the fourth major component.
The balance between these elements determines soil behavior. One important physical trait is water-holding capacity, which influences what types of plants a soil can support.
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“If the soil is like dunes, adding water will cause it to run off, but if the soil is clay, its ability to retain water will be very high. If you add water and return the next day, you will find that the water is still there,” said Nasir.
Chemical properties, such as whether soil is alkaline or acidic, are equally important. Understanding both physical and chemical traits allows for proper assessment and treatment when needed.
“What determines whether a plant is suitable for a particular environment is primarily the plant's nature. For example, some plants have fibrous roots and therefore do not require well-draining soil,” Nasir added.
“A palm tree, for example, does not care whether it was planted in one soil or the other because its roots are fibrous. Therefore, palm trees are strong plants and are suitable to grow in both dry and wetlands, while preferring sandy areas.”
Crops such as potatoes, onions, carrots and beetroots — where the edible part grows underground — typically thrive in sandy soils. As a result, plantations of these crops are commonly found in northern regions such as Hail and in Wadi Ad-Dawasir.
In the eastern region, including Al-Ahsa, wetlands are more common due to climatic conditions. Growing plants in such environments often requires human intervention.
“Plants that are coastal or could be found in lagoons or lakes must have some sort of soil around them, like lotus flowers and mangrove trees.”
“An important parameter to keep in mind is that there is no air in its soil, and they are adapted to this condition. However, the lack of air, along with the presence of organic matter, will create a situation where anaerobic bacteria react with the soil, potentially causing diseases we can easily avoid,” said Nasir.
He emphasized that removing organic matter from such soils is essential to ensure plant survival in aquatic environments.
Mountainous and rocky regions in Saudi Arabia are generally volcanic, resulting in low water-holding capacity and challenging growing conditions. However, volcanic ash contributes to high fertility, allowing certain crops to flourish.
As a result, western regions support tree crops such as coffee, mangoes, some banana varieties and pomegranates.
As development accelerates across the Kingdom, soil improvement efforts are expanding under the National Greening Program.
“Soil is considered fundamental for the National Greening Program’s objectives. Understanding the soil variability along the Kingdom is a precondition for fostering sustainable soil management,” Almutairi told Arab News.
Adding, “In this line, the NGP is working towards the establishment of the Saudi Soil Information System (TURBA-KSA), which consists of mapping soils and its functional properties in the Kingdom using state-of-the-art technology.”
He also noted the creation of the “Land Rehabilitation Watch” to report, verify and monitor land rehabilitation nationwide.
“This milestone allows the Kingdom to understand how soil and land health are progressing against national and international targets of land degradation neutrality. Documenting good soil and land management practices is also important, so that those successful practices could be scaled up along the Kingdom, which is a priority task for NGP,” he said.
Raising public awareness is another key pillar of the program.
“Assessing different emerging technologies and soil amendments is a daily activity of NGP, as it then provides technical support to partners on the selection and application of these technologies.”
DID YOU KNOW?
• Saudi Arabia cultivates around 1 million hectares, mainly in Riyadh, Qassim, Hail, and Jouf.
• Farming follows the seasons: winter brings onions, garlic, and carrots, while summer yields watermelon, tomatoes, and cucumbers.
• The Kingdom is a top date producer, with over 31 million palm trees generating nearly 1.54 million tons, especially in Riyadh and Qassim.
Almutairi stressed that soil is often overlooked because it lies unseen beneath the surface, despite its critical role.
Yet soil produces 95 percent of food, stores water, holds more carbon than vegetation and the atmosphere, suppresses contaminants, regulates water, carbon and nutrient cycles, and hosts microorganisms linked to the human microbiome.
He emphasized the need to engage the general public, particularly urban communities disconnected from nature. Education helps people understand where food comes from and how contact with soil — such as walking barefoot — can support well-being. Healthy soils also contribute to cleaner water and air, he added.
Almutairi also called for stronger advocacy among decision-makers, noting that investment in healthy soils supports climate action, food security and sustainable development.
He concluded that key strategies include officially observing UN World Soil Day on Dec. 5, integrating soil education into curricula, launching annual social media campaigns, using art to raise awareness, and organizing public events that connect soils to everyday life.










