Was the car industry Bailout a good idea? Federal Assistance - Emergency financial bailout (2008)
The bailout of the German automotive industry beat demand for government assistance.
A day after the United States Congress adopted a bailout of 14 billion October 7 billion the US auto industry, car manufacturers in Germany hope to receive similar support, both European governments and possibly fund American.
In an interview with the newspaper, the president of the German Association of the Automotive Industry VDA, Mattias Wissmann, Berliner Zeitung competition concerns pleading for state aid for German car manufacturers that responded to bailout American, Wissmann said what is important for us is that all those who produce in America - not just uS companies - are treated the same way.
Lord, please save Ford A pastor prays for the future of the American auto industry during a service in Detroit, Michigan.
Fearing the consequences of a bailout benefiting only American-owned businesses, Wissmann added that the distortions of competition must be avoided German producers currently hold February 7 percent share of the US auto market, with most of these vehicles manufactured on US soil.
Wissmann also asked the European Union to extend 2-40000000000 loans at low interest rates for European automakers to help promote the development of friendly vehicles Wissmann Environment said he wants Germany to be the world leader in fuel efficient car production, and that, given the difficult credit market, EU loans would help force the development of environmentally friendly technologies in 2007, in a much healthier economic climate, the EU extended the automotive industry July 2 billion in low-interest loans.
Wissmann's request for government aid comes during a week of troubling news from the German automotive industry Monday, the financial services provider VW said it would apply for loan guarantees from the German government 500 billion Monday bank rescue program, the auto giant Daimler announced that it will shorten the workweek to four days - and in some factories only three - January 12 until at least March 13 VW Wolfsburg automaker had already announced that it would suspend production at its hometown plant for three weeks from the 18th of December.
The German automotive industry fears that auto bailout in the US could put German manufacturers at a competitive disadvantage.
But the real problem comes from the automotive suppliers, many of which are heavily exposed to the difficulty of the US car market on Monday, the automotive supplier TMD Friction filed for bankruptcy protection in Cologne on Wednesday, the tire manufacturer Continental Hamburg forecasts lowered its earnings and announced that it would not pay dividends to shareholders in 2008 or 2009 tedrive, another supplier has been reported that the preparation of bankruptcy documents.
A total of 15 different automotive suppliers have asked for emergency loans guarantees the West German state of North Rhine-Rhin self-heavy The state has already made 900 million available for automotive suppliers and is up aside for another 1 1 billion more requests.
Not everyone is happy bailout negotiations being floated on both sides of the Atlantic Willie Diez, director of the Institute for Automobile Economics, responded to news about the US bailout plan, saying that the Berliner Zeitung the subsidy race began Diez worried -the edge through government subsidies prevent the industry to make the necessary adjustments.
Merkel and Sarkozy expected to visit the US to discuss how we can avoid mutual outbidding help, said Diez Although it acknowledges that the collapse of the US auto industry would hurt short-term German suppliers in the long term, he believes, would gain Germans.
Of course, any discussion of a US rescue plan is still extremely premature Although a bill of 14 billion adopted by the House of Representatives on Wednesday, he enjoys little support from Republicans in the US Senate, which must ratify the bill before it can take effect.
Senator Richard Shelby, a Republican from Alabama, called the bailout travesty Wednesday and threatened to filibuster if he made his threat, the bill would have to receive 60 votes in the chamber 100 places to ensure the passage of the Senate Minority Leader, Republican Senator Mitch McConnell told reporters voice aren t there to avoid a filibuster.
The bailout of the German automotive industry beat government seeks help SPIEGEL ONLINE, bailout, beat German.