European Automakers to Push for Funding for Lower GHG-Emitting Cars

European automakers will approach to European Commission (EC) seeking €40 billion in loans (US$54 billion) 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 program of US$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.

Carmakers worry it will be impossible to attain the targets for carbon dioxide emissions that Brussels intends because of the economic difficulties. “We are on our knees at the moment, so if they want us to invest billions of euros, the Commission has to help us out,” one European car executive said.

On top of the coming push for greater reductions in GHG emissions, sales of personal cars in Europe have been decreasing. ACEA figures through September show that demand for new cars in Europe decreased by 7.3% in July and 15.7% in August, reflecting the general deterioration in consumer confidence and the effect of continuing high fuel prices. Over the first eight months of the year, new car registrations declined by 3.9% in Europe.

http://www.greencarcongress.com/2008/10/european-automa.html

Source: Green Car Congress