Now European car companies want a bailout

Posted Oct 5th 2008 10:40AM by Douglas McIntyre
Filed under: Industry, Politics, Recession

The car manufacturers of Europe will ask for $55 billion in loan guarantees to upgrade their factories to build more fuel-efficient cars. The proposed arrangement looks a lot like the one just put together by the U.S. government and the Big Three American automakers.

According to The Wall Street Journal (subscription required), "Fiat suggested the request to European auto executives at a board meeting of ACEA, the European Auto Makers Association on Friday."

Perhaps Japanese, Chinese, and Korean car companies can call for similar help, and the value of auto loan guarantees around the world can approach $200 billion.

While governments try to bear the burden of a worldwide financial meltdown, more and more struggling industries will ask for assistance. The airline industry may be next; it's being badly hurt by high fuel prices. Food companies may want aid because of rising commodities costs. Refiners are being hurt by high oil prices and may need a hand as well.

So, the question becomes, will governments decide which industries make it?

Douglas A. McIntyre is an editor at 247wallst.com.

Tags: ACEA, auto manufacturers, bailouts, Big Three, Fiat, financial meltdown, fuel prices, inthenews

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Reader Comments (Page 1 of 1)

10-06-2008 @ 6:15PM

John Maszka said...

This bailout is just one more example of the indivisible handjob stroking irresponsible CEOs and CFOs with billions so that they can run the American economy even further into the ground. So much for Keynesian economics. If the goal is to stimulate the economy, why not give the money directly to the American taxpayer? We'd do twice as much good for the economy by giving even half as much directly to the taxpayers. A bird in the hand is worth two in the bush administration.