"European automakers to seek EUR 40 billion in loans from EC"
As the world's financial system is increasingly short on cash, it are not just the banks turning to governments for assistance. Both US and European car makers have called upon governments to make available billions in loans.
Green Car Congress reports: "European automakers will approach the European Commission (EC) seeking EUR 40 billion in loans to support their shift to lower GHG-emitting vehicles, according to Fiat CEO and former ACEA (European Automobile Manufacturers Association) president Sergio Marchionne, in interviews given to several financial newspapers at the Paris Motor Show.
The request mirrors the new programme of USD 25 billion in loans from the US government to domestic automakers and suppliers for retooling factories to produces more fuel-efficient vehicles.
In an interview with the Financial Times, Marchionne said that European manufacturers were unanimous in the approach to the EC.
'We will approach the European Commission for a similar idea to [that of] the US: €40bn is a good number given the bigger size of the European industry. We need a level playing field,” Mr Marchionne said. The US loan has caused concern among German carmakers such as Volkswagen. They think it could discriminate against foreign manufacturers in the US.' "
Our take: although part of the money will most certainly be used to speed up development of innovations that ultimately will improve vehicle efficiency, it may very well be that the argument of 'producing lower CHG-emitting vehicles' is a euphimism for nothing less than plain survival.
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