Car firms want cash for carbon reduction

Posted on 6 Oct 2008 by The Manufacturer

European car manufacturers are seeking over £30bn in low interest loans from the EU to aid development of greener cars.

The calls come after the US government last week provided a consortium from the automotive industry there with $250bn in a similar deal.

Fronting the move is the collective Association des Constructeurs Européens d’Automobiles (ACEA – European Automobile Manufacturers Association) which is comprised of BMW Group, DAF Trucks, Daimler, FIAT, Ford of Europe, General Motors Europe, Jaguar Land Rover, MAN Nutzfahrzeuge, Porsche, PSA Peugeot Citroën, Renault, Scania, Toyota Motor Europe, Volkswagen and Volvo.

ACEA president, and chief executive of PSA Peugeot Citroen, Christian Streiff said: “Carmakers face increasingly hesitant consumers and call on governments to respond and restore consumer confidence. The proposed loans package will give an important and welcome signal to consumers and financial markets.”

The money has been touted for factory upgrades to ensure the firms remain competitive after the US deal.