Car industry promised 40 billion to help emission cuts

Now Reading:

Car industry promised 40 billion to help emission cuts

Text size Aa Aa

Europe’s car industry has received a 40 billion euro promise of innovation support.

The European Commission has agreed to help the sector achieve EU emission reduction targets.

With the High-Level Group on a competitive automotive regulatory system, in Brussels, Commission Vice-President Günter Verheugen said high-tech cars could help Europe’s motor industry keep ahead in the game.

He described the booster shot as a 40-billion-euro credit line for manufacturers’ research and development of energy efficiency, more ecological cars and more innovative new vehicles.

“This 40 billion,” he said, “will be offered under preferential conditions through the financial instruments of the European Investment Bank.”

This means loans at reduced interest rates, which the industry asked for three weeks ago with global financial systems suffering repeated punctures, and the American government doling out patches left and right.

Several European car giants have said they are reducing production.

Third quarter sales were down about 10 percent, they said, they expect “probably a lot worse” in the fourth quarter, and that is why they would need backup if they are going to make emissions improvements in line with EU climate change goals.