The French government faces a battle with...

The French government faces a battle with independent French auto maker Peugeot over a decision to write off $2 billion--or nearly a quarter--of the debts of Peugeot’s state-owned rival, Renault. Peugeot said Friday its chief executive, Jacques Calvet, a critic of state subsidies to help Renault, was breaking off a visit to Japan in anger at the decision. Renault sold its majority stake in American Motors Corp. to Chrysler Corp. last March as part of a financial recovery plan.