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ReprintsEU snubs automakers industry plea for loans
Automotive News Europe
October 6, 2008 17:00 CET
PARIS/BRUSSELS (Reuters) -- European automakers called on Monday for 40 billion euros ($54.4 billion) of loans to help develop greener cars in the fight against climate change, but were instantly rebuffed by the EU executive. "This idea does not even merit discussion," said a source at the European Commission. Auto industry group ACEA said the economic crisis and sliding consumer confidence made it increasingly difficult for manufacturers to achieve EU targets to curb carbon dioxide emissions from cars by 18 percent by 2012. Last week, the Bush administration agreed to provide $25 billion in low-cost loans to help revive ailing U.S. carmakers to improve the fuel efficiency of vehicles. But the European Commission rejected the demand for a loan that would equate to over one third of the annual EU budget. An ACEA spokeswoman said 40 billion euros equated to just two years of the research and development budget for Europe's car industry and the group was trying to kick-start a discussion of how the EU might support its car makers in a time of change. ACEA is also asking the EU to bring in incentives for car owners to scrap vehicles over eight years old over a three-year period to speed up fleet renewal. |
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