The French government plans to give vehicle manufacturers EUR400m to support research and development of ‘non-carbon vehicles’ over the next four years.
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President Nicolas Sarkozy announced on Thursday (9 October) that France would seek changes to EU state aid rules to allow this, Reuters reported.
Sarkozy was influenced by the US government granting US$25bn in long-term, low interest loans to domestic vehicle manufacturers.
“I don’t want us (Europeans) to be living in a framework that doesn’t allow us to help our own carmakers undertake a major technological shift,” he said.
Earlier this week the Association of European Vehicle Manufacturers (ACEA) asked the European Union to make available EUR40bn in low-interest loans to help European automakers survive the current financial crisis and meet future CO2 emission requirements.
But the idea was quickly rejected by the European Commission, which said this would equate to over one third of its annual budget.
“This idea does not even merit discussion, “a European Commission source told a German newspaper.
