ACEA, the European carmakers’ association, has welcomed the EUR3bn in loans freed today by the European Investment Bank (EIB) to finance automotive projects, most of them concerning ‘green’ investments.
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As the EIB has indicated, a total of around EUR7bn will become available in the first half of this year and its budget allows maintaining similar levels of financing until 2012.
“The arrangement with the EIB underlines the importance of the automobile industry for investments, R&D and employment in Europe as a whole,” said ACEA secretary general Ivan Hodac.
However, ACEA said that while the EIB loans will contribute to meeting environmental requirements they are insufficient to confront the extraordinary economic circumstances and claimed there is an immediate need for access to financing in general.
“At the moment the financial markets are not functioning despite billions in government aid to financial institutions”, adds Hodac. Both vehicle sales and automotive manufacturing are largely dependent on credit and financing because of the capital-intensive nature of the industry and the relatively high purchasing price of the product.
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By GlobalData“Viable businesses are at stake and the EU risks doing too little too late,” added Hodac.
