German car industry calls for government help

15 October 2008 21:32  [Source: ICIS news]

TORONTO (ICIS news)--Germany’s car industry called on Wednesday for the government to provide incentives for drivers to buy new cars to help car makers cope amid the global financial and credit crisis.

 

“After the banking bailout, the car industry must also be supported with specific measures,” said Volker Lange, president of VDIK, which represents international car makers in Germany.

 

Germany’s government, in line with measures taken in other countries around the world, pledged on Monday to provide almost €500bn ($685bn) to help banks and provide loan guarantees.

 

Government incentives for new cars were also needed to achieve the European Union’s climate and air quality targets, as new cars were more energy-efficient and cleaner than older models, Lange added.

 

Matthias Wissmann, president of VDA, which represents German car makers, said the financial bailout package was an important first step in turning around the economy.

 

Wissmann, a former federal science minister, also said that government support measures for car industries in other countries could distort market competition, a factor Germany needed to keep in mind as it was reviewing its options.

 

The groups’ calls echoed similar pleas by US car makers for help and came as market researchers predicted that global car markets could collapse next year.

 

Cars are an important chemical end market. Car parts include rubber hoses, plastic dashboards, catalysts, fibres, adhesives, coatings and many other plastics and chemical-related products.

 

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By: Stefan Baumgarten
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