Ford wants EUR 40 billion in EU loans for industry: report
(BERLIN) - The European Union should make around 40 billion euros (50 billion dollars) in loans available to the continent's ailing auto sector, the head of Ford Germany said in comments published Friday.
Bernhard Mattes said such assistance would not be state aid but was "in order to allow all European carmakers the possibility to meet EU requirements on fuel efficiency and emissions etc more quickly."
"This is money that has interest on it and that has to be paid back, so not a gift," Mattes was quoted as saying in the German daily Bild. "It is about modern technology and competitiveness on the world market."
The EIB, the European Union's lending arm, said Monday it would propose to finance ministers that it increase its lending volume by 20-30 percent to 10-15 billion euros, part of which would be earmarked to help the transport industry.
The proposals came after data showed new car sales in Europe, where Ford is number three in terms of market share, plunging 14.5 percent as the global financial crisis plunged the eurozone into recession.
The heads of Ford, General Motors and Chrysler pleaded with US lawmakers this week for a multi-billion dollar rescue for their crippled industry but Democrats put off a vote until at least December and told them to come up with a new restructuring plan.
In Germany, executives from GM's Opel unit asked Chancellor Angela Merkel to provide loan guarantees of over one billion euros to keep it afloat if its parent company goes bankrupt. Merkel said Berlin would decide by Christmas.
Opel employs 26,000 people in Germany, where one in seven jobs is estimated to be dependent directly or indirectly on the auto industry.
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ford wants 40 Billion..from EU.
car manufacturers have had more than 35 years since the last oil crises in 1973 to get their act together and produce effient and non-polluting vehicles and totally ignored the issue in pursuit of bigger profits through gas guzzlers and finite resorce (fuel) waisters.
A gallon of oil can be used to produce more than 270 other products such as plastics, fertilizers medicine etc which are more essential to the human race than these grossly inefficient wasters and polluters.
The world needs efficient public transport. Not arrogant and inefficient corporations carried on the tax payers back and their crappy products.
Besides, the tax payers are not in the business of rescuing inefficient companies even as money loaners no matter how many workers are left unemployed when they go belly up.
A healthy economy fluctuates like a sine wave and in times of economic downturn and especially in a recession, badly managed companies meet their deserved demise while
the efficient companies survive and prosper.
Throughout the last 80 years a good number of auto manufacturers have disappeared. Has the world come to and end as a result?
Of course not.
In a recession and make no mistake about it that a recession is in progress thanks to the likes of G. W. Bush that is; Gerk (pronounced Jerk) W. Bush and company and will most likely end up as an economic depression bigger than the last one in 1930s, food, medicine and shelter take precedence over non-essential consumer products such as automobiles, boats, holidays etc.
So, enough of their arrogance and horse thievery, the auto manufacturers such as ford and bernard mattes can go and *&%# themselves.
Let them go belly up. If they have the smarts they can re-emerge as leaner and more focused corporations with sensible products.
And the world would be a better place for it.
Dr. D Arabaci