European automakers have followed the lead of their US counterparts by confirming that they will approach the European Commission for a €40 billion loan.

After weeks of negotiations, Congress recently approved a $25 billion injection into the US industry to help manufacturers prepare for upcoming fuel emissions targets.

Now Sergio Marchionne, Chief Executive of Fiat and former President of the European Carmakers' Association (Acea), has explained that a similar loan would help fund environmentally-friendly initiatives.

He told the FT: "We will approach the European Commission for a similar idea to [that of] the US: €40bn is a good number given the bigger size of the European industry. We need a level playing field."

While the precise details of the US loan have yet to be thrashed out, Volkswagen has already expressed concerns that it may discriminate against foreign manufacturers.

There have also been murmurings that the loan will give the three big Detroit-based companies - General Motors, Ford and Chrysler - an advantage in the development of greener vehicles.

The EU has set automakers tough emissions targets, but many are convinced they will be almost impossible to meet, particularly in the uncertain economic climate.

As one European car executive told the newspaper: "We are on our knees at the moment, so if they want us to invest billions of euros, the Commission has to help us out."

Source:

Europe's carmakers seek €40bn loan for cleaner, greener vehicles (04/10/08)

http://www.ft.com/cms/s/4d6745ba-91ad-11dd-b5cd-0000779fd18c,Authorised=false.html?_i_location=http%3A%2F%2Fwww.ft.com%2Fcms%2Fs%2F0%2F4d6745ba-91ad-11dd-b5cd-0000779fd18c.html&_i_referer=

Paris scepticism at Detroit bail-out (03/10/08)

http://news.bbc.co.uk/1/hi/business/7651257.stm