The request for government loans was forwarded in line with the new emissions regulations that will be implemented by 2012. The regulations are requiring car manufacturers to find a way to reduce their vehicles’ emissions to 130 grams of carbon dioxide produced for every kilometer. The previous figure set was 158 grams. Reports say that this new regulation will most likely be finalized by the end of this year.
According to the European Automobile Manufacturers Association, which comprises of 15 automakers that includes BMW, Daimler AG, Renault, Fiat, Volkswagen AG, Ford of Europe, General Motors Europe and Toyota Motor Europe, they’ve decided to request for this loan, not only because of the strict emissions requirement being set, but also because they feel left out by the program set-up by the U.S. for automobile manufacturers. The U.S. implemented program aims to provide up to $25 billion in loans to help modernize plants and build technologically advanced vehicles that are 25 percent more efficient.
As of late, decline in sales and a dip in the economy has forced European automakers to cut down on production. With the help of this loan, European car manufacturers are hoping that this will be able to help them meet the new standard set for emissions and at the same time fund whatever automotive projects they may have that goes beyond the simple tweaking of their vehicle’s emissions.
All we can hope for now is that this loan will be able to help the European car makers rebound from whatever loss they’re incurring right now. The last thing we need is for them to halt production and just fall off the face of the Earth.
Sources: Kicking Tires, The Detroit News
