The Turkish government is considering steps to prop up the country's auto producers as the global economic crisis takes its toll on the sector.

An un-named government official has told the Reuters news agency that authorities are looking at reducing loan costs for domestic manufacturers. However, there are also discussions about whether the government can reduce the special consumption tax on vehicle sales.

"At this stage the most likely option would be to reduce loan costs for domestic manufacturers through the (state) Eximbank," said one government source.

"In the second stage a tax cut to reduce stocks and increase production could come onto the agenda," the source was quoted saying.

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