Automakers Ask European Union for $55 Billion in "Green" Loans
October 06, 2008

Automakers doing business in Europe have requested of the European Union 40 billion euros ($55 billion) in low-interest loans to help them develop fuel-efficient vehicles. The loans are patterned after the $25 billion signed into U.S. law by President George Bush last week.

The group of 15 carmakers requesting the funds - those that make up the Brussels-based European Automobile Manufacturers' Association (ACEA) -- include Volkswagen, PSA Peugeot Citroen, Fiat and Renault as well as General Motors, Ford and Toyota.

The automakers also are urging the European Union to provide consumers with incentives to scrap cars that are more than eight years old in order to accelerate purchases.
Car sales in Western Europe are forecasted to fall to 12.4 million in 2009, the lowest level since 1995 and down from 14.8 million last year.

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