France's PSA Peugeot-Citroen is currently in talks to take a €7 billion lifeline from the French government, which wants to avoid layoffs.
Ford of Europe Chief Stephen Odell said the French government's aid might not comply with European laws. But more broadly, he said, it doesn't help Europe address its market issues.
"In the end, and this is my view, I don't think it's sustainable for support from government to keep companies competitive going forward."
Odell said it is likely European car sales could be even lower next year than this year.
"Frankly, we do need to see some signs of economic recovery, or at least stability," he said.
Dee-Ann Durbin in Detroit contributed to this report.
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