European Automakers to Seek €40 Billion in Loans from EC

[ericmvest]

Volkswagen is on the right track. They are a German company and they should be asking the German government and/or the EU for assistance, not the American Federal Government.

[Rocket 88]

Originally Posted by ericmvest

Volkswagen is on the right track. They are a German company and they should be asking the German government and/or the EU for assistance, not the American Federal Government.

VW will ask anyone for money. They're probably still going to try and get a loan from the US Government.

[baloo]

The timing is not a conincidence. They're trying to get the EU to retaliate against the US market intervention.

[eaton53]

As long as Opel, Saab, Ford, etc. get theirs, great.
I don't think Toyota or Honda will qualify...

[Maetrix66]

OK

My comments picking on the British were out of line.

Besides, as everyone knows, Britain doesn't have a demonstrable presence in the automotive sector, so I can't imagine it's them pushing this legislation.

Besides, after the Austin Powers movies, I think we've picked on the British enough.

Now, on to the Japanese! (Just kidding. No, really, on to the Japanese!)

I think it's sad, and indicitive of the quasi-socialistic approach to modern government that they perpetuatite with this excessive legislation.

They dictate that vehicles have to emit a certain amount of pollution, have to be able to run head on into a carton of eggs without cracking one at 50 mph, etc,encouraging the automakers to seek government subsidy. The government, in it's infinite wisdom, will realize that by having these companies under their financial control, they have more power, encouraging them to pass further legislation.

-Ok, I'm turning off the doom and gloom express now.

[AMERICA 123]

Originally Posted by BigThreeForever

Freedom fries, anybody?


If we can put aside the rampant Europhobia for a short spell, does anybody know for sure whether GM Europe and Ford of Europe would be eligible?

They are, after all, an established part of the European automotive world, and have been for getting on for a century. I can't see any reason why they shouldn't qualify.Saab and Volvo, of course, would be included, if so. If that is the case, where's the beef?

It was raised by somebody else here, but it is worth repeating - a strong European industry means less market share for the Japanese. You remember the Japanese, right? You know, the ones levelling the Midwest.

Great post - I'm still laughing

[vcs2600]

Originally Posted by Maetrix66

Yeah, sure. 100 different car manufacturers that sell 5000 cars apeice does not a larger
manufacturing base make.

Total GDP (per world bank):

EU: $16,830 T
US: $13,843 T

Percentage of economy from manufacturing:

EU: 22%
US: 12%

So, yes the EU manufacturing base is much larger than the US's. probably twice as big in total. Good thing we Americans still lead the world in financial services

[Maetrix66]

So, yes the EU manufacturing base is much larger than the US's. probably twice as big in total. Good thing we Americans still lead the world in financial services

Not for much longer, we don't!

I guess I underestimated how many countries belong to the EU. They should get their hands on whatever cash they need to make better vehicles, because, as someone said above.

Better them than the Japanese. (Oh wait, their government already helped them out.)

[ph39]

Originally Posted by Bravada

This would've never got through (before they negotiated lower CO2 limits instead), hadn't the Congress lead the way. It is amazing to see USA starting the wave of government interventionism!

The USA intervention was setting and increasing the CAFE standards. Just like Europe setting the CO2 limits. Once a business invests billions in manufacturing plants, tooling, capital, etc and then the government says you must throw that away and build something else (for the common good) the government has a requirement to help. Now - I don't like CAFE or CO2 regulations - but I do think higher gas mileage cars that pollute less is for the public good. I just prefer the simple approach. Instead of forcing manufactures to make vehicles people don't want - raise the gas tax.

They wont do that in the US people the people will revolt. CAFE (and loans to Automakers to retool plants to make smaller gas effecient cars) are a hidden tax people dont see everyday. A Gas tax is seen by everyone every day as the past the local gas station.

[Bravada]

Ph39, I understand this argumentation, but this is very interventionist. It is a bit surprising to see the US buying it, and then EU has more pressure upon itself to bow down to such demands.

BTW, people wouldn't revolt, some automakers would just go bankrupt. CAFE in a way is a tax, whose burden is being carried by consumers and manufacturers for a few decades, and nobody revolted. It is actually a way of regulating the market that consumers can more easily accept, because it directly affects the "evil big-business carmakers" and not consumers, unlike the much more effective, straightforward and sensible excise tax on gasoline or emissions-based taxation of individual vehicles.

Besides, as everyone knows, Britain doesn't have a demonstrable presence in the automotive sector, so I can't imagine it's them pushing this legislation.

The UK builds almost 2 million vehicles annually, and is the European manufacturing centre for Toyota, Honda and Nissan, as well as an important location for Ford and Opel - not to mention JLR, Rolls, Bentley et al. and of course the slowly revived MG. There are a lot of jobs in the automotive industry in the UK. Also, UK's design centres and engineering facilities do a lot of work for automakers accross the globe (Ricardo and Lotus, to name the more famous ones).