Aid packages for automobile industries around the WORLD!!!!

Discussion in 'Wall St. News' started by S2007S, Feb 6, 2009.

  1. S2007S


    And many thought there was an aid package for just the US auto makers....

    Aid packages for automobile industry

    Italy’s cabinet approved a long-waited decree offering incentives on new car purchases to stimulate spending and revive the recession-bound economy, a government source said. The government also offered tax breaks on appliances and furniture as part of the package.

    Here are some details about recent aid packages for the shattered auto industry:

    * BRAZIL: Said in November it had instructed state-run bank Banco do Brasil to make available a total of four billion reals ($1.72 billion) so that automakers’ financing units could increase lending and spur sales.

    * BRITAIN: Announced last month it would guarantee up to 2.3 billion pounds ($3.29 billion) of loans to the car industry. The government said it would guarantee up to 1.3 billion pounds of auto industry loans from the European Investment Bank and guarantee a further one billion pounds of loans to back investments that are not eligible for support from the European lender.

    * CANADA: Unveiled an aid package on Dec 20 that provided C$4 billion ($3.28 billion) in emergency loans to the Canadian arms of General Motors and Chrysler to keep them operating while they restructure. The automakers have a deadline of Feb 20 to come up with a comprehensive plan that would allow them to get government aid.

    * CHINA: Unveiled measures on Jan 14, which included cutting in half, to five percent, the sales tax on purchases of cars with engine sizes below 1.6 litres and one-off cash subsidies totalling five billion yuan ($731.1 million) to owners of high-emission vehicles who trade them in for cleaner ones.

    * FRANCE: Prime Minister Francois Fillon said on Jan 20 France may pump up to 6 billion euros of aid into the industry, but warned that automakers would have to safeguard French jobs in return. Measures may be announced next week.

    * GERMANY: Unveiled a 1.5 billion euro aid package on Jan 13. The package forms part of a 50 billion euro stimulus package of investments, tax relief and support for companies. The measures include incentives worth 2,500 euros for new car purchases.

    * ITALY: Announced a stimulus package for cars on Friday which includes a payment of as much as 1,500 euros for trading in an old car to buy a new one. Italian car sales are expected to fall 17 percent in 2009, after a 13 percent drop in 2008,

    * PORTUGAL: Announced on Dec. 3 a 200 million euro credit line for auto and car parts exporters.

    * SWEDEN: Said on Jan 22 it had given the National Debt Office the authority to grant emergency loans to the industry.

    * UNITED STATES: Announced on Dec 19 a $17.4 billion lifeline to Detroit carmakers. The bailout funds will come from the $700 billion Troubled Asset Relief (TARP) programme. GM will receive $13.4 billion and Chrysler $4 billion. Ford Motor Co said it did not need a loan. Loans will be called in if the automakers cannot prove they are viable by March 31. reuters