Brussels backs €40 billion loan package for car industry

"We are open to the possibility of providing support for the development of low-emission cars; high-tech cars that could help the European motor industry maintain its global competitiveness" while respecting the EU state aid rules, said European Commission President José Manuel Barroso.  

The president of the board of directors of the European Automobile Manufacturers' Association (ACEA), Christian Streiff, said the industry needed "coherent, predictable and cost-effective regulations that can maintain affordable vehicles on the market".

He argued that the "car industry's competitive strength is being pushed to its limit" due to, first, high fuel prices and then the financial and economic crises. In addition, he said: "European carmakers are faced with the need to sustain a very high level of investment to support the transition of the market to low-emission vehicles and to address many new regulatory requirements. Large sums are being put to product development."

This is why ACEA members are calling for government action and financial support to support the market, give incentives to renew the fleet all over Europe, help sustain investment in R&D and ensure the transition to low-emission cars. "We are waiting for a low-interest loan package of €40 billion to help secure sustainable market for newly developed fuel efficient technologies which are currently too expensive to enter the market," he concluded. 

Streiff also noted that planned CO2 penalties were "just crazy" for an industry that was already in difficulty.

"If Europe is to maintain its global competitiveness, dramatic yet affordable improvements in safety and environmental performance are needed," said Wil Botman, director general of the Fédération Internationale de l'Automobile's (FIA) European Bureau, which represents automobile consumers.

FIA thinks that progress could be achieved by focusing on aspects related to driver behaviour and road infrastructure safety management, through improved road infrastructure, increased support for eco-driving techniques and harmonised consumer information on car emissions. 

Greenpeace EU accused the industry of "crying wolf and presenting inflated costs for reducing their CO2 emissions" and heavily criticised the car industry's demands for financial support. The industry is "asking taxpayers to foot the bill for its irresponsibility and inaction, while continuing to churn out inefficient cars," it stated.

"As long as carmakers duck their responsibility to reduce CO2 emissions, any loan given to them would mean subsidising climate change. The industry should stop blocking proposals for serious emissions reductions before a handout is even considered," said Greenpeace EU transport policy campaigner Franziska Achterberg.  

The European Parliament's Greens/EFA group referred to the conference conclusions as Verheugen having given the "green light and greenwash to subsidies in disguise" and accused him of "lobbying together with automakers to water down CO2 reduction targets for new cars". 

"Helping the car industry out of a crisis is unacceptable if it comes in the form of disguised subsidies to companies that are hell-bent on continuing with business as usual," said vice-president of the Greens/EFA Group, Rebecca Harms.