German finance minister Peer Steinbrück has said he would “not be prepared to offer support for the automotive industry or promise any tax concessions.”
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Steinbrück, quoted by the Zeir newspaper, was responding to calls yesterday from automotive industry trade association Verband der Automobilindustrie (VDA) and recent requests from European vehicle manufacturers trade association, Association des Constructeurs Europeens d’Automobiles (ACEA) for scrapping incentives and financial support for R&D to assist a transition to more fuel-efficient and alternative fuel vehicles.
German chancellor Angela Merkel had suggested on Monday that a rescue package similar to that made available to banks might be possible for the vehicle manufacturers. She was influenced by the US government making US$25bn of low-interest loans available to domestic vehicle manufacturers to help them through the financial crisis at a time when they need to invest heavily in developing new powertrains and new vehicles.
ACEA has asked for a similar level of credit (EUR40bn) or investment from European governments.
VDA president Matthias Wissmann told trade paper Automobilwoche “the market decline in western Europe and North America poses new demands on us; that will cost us a lot of our market leadership.”
