F&I Management & Training

Acea, the European carmaker's association, has asked the European Union for a 40bn Euro (£31bn) loan.

The US congress last month approved $25bn of funding to help American companies develop greener technologies, prompting European manufacturers to ask for similar help.

The move follows calls from Jaguar and Land Rover managing director David Smith and Ford of Britain boss Roelent de Waard for state aid for manufacturers to develop green technologies and safeguard production in the UK.

Acea said the economic downturn had increased the pressure on European car production caused by the pending C02-reduction legislation and could trigger "a backlash to the transition to low-emission vehicles".

Acea proposed EU policy makers should give carmakers a low interest Euro40bn (£31bn) loan to secure fuel-efficient technologies.

It also called for incentives for motorists to scrap cars over eight years old and replace them with cleaner new vehicles.

Christian Streiff, Acea president chief executive of PSA Peugeot Citroen, said: "Carmakers call on governments to stimulate the economy, relieve the credit crunch and restore consumer confidence.

"Only then will consumers have the means to invest in new vehicles".

DATED: 08.10.08

FEED: MT