European industry ministers in crisis meeting over future of motor industry
Sat 17 January 2009
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European industry ministers have held an extraordinary meeting to discuss the downturn in the automotive sector and approaches for its support. Ministers expressed “deep concern” at the state of the industry but said they believe "the primary responsibility to respond to these challenges rests with industry itself”.
The meeting was convened in Brussels at the request of Industry Commissioner Günter Verheugen. Ministers discussed the downturn in the EU’s automotive sector and considered approaches for its support. They agreed on the “particular the need for coordination at European level.” The meeting notes, published on the Europa website, say that ministers expect a 10-20% fall in car sales in 2009 after an 8% fall in 2008 (vs 2007). Even greater falls - up to 30% - are expected in heavy duty vehicles.
The industry ministers agreed that any support for the sector should ensure “the production of world-class vehicles in terms of innovation, environmental performance and safety”. They agreed that action should be effective and co-ordinated and that a “race for subsidies” should be avoided. There was support for national efforts including scrappage incentives, taxation and public procurement.
Meanwhile, the environment campaign group Friends of the Earth has called for any Government financial support to the car industry to be linked to guarantees on the development of greener vehicles.
Friends of the Earth's transport campaigner, Tony Bosworth, said: "Any Government support for the car industry must be on the condition that it speeds up the manufacture and purchase of greener cars. Cleaner, smarter cars that use less fuel will help tackle climate change and cut costs for motorists too."
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