European Commission Snubs Automakers' Plea for Loans to Ease Green Transition

European automakers today called for $55.2 billion of low-interest loans to help develop greener cars in the fight against climate change, but their request was instantly rebuffed.

"This idea does not even merit discussion," a source at the European Commission said.

An auto industry group claimed the global economic crisis was making it increasingly difficult for carmakers to achieve European Union emissions targets by 18 percent over the next several years.

But the European Commission rejected the demand for a loan that would equate to over one third of the annual EU budget.

A representative for the auto industry group said it was trying to start a discussion of how the EU might support its automakers in a time of change.

The same group has asked the EU to create incentives for motorists to scrap vehicles over eight years old to speed up fleet renewal.

Posted by

Scott Doggett October 6, 2008, 2:12 PM

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Emissions, Fiat, Fuel Economy, Fuels & Technologies, Legislation, Manufacturers, Tax Incentives