Stay up to date with notifications from The Independent

Notifications can be managed in browser preferences.

EU reveals pounds 3bn deal for car industry to counter Japanese

Sarah Lambert
Wednesday 23 February 1994 19:02 EST
Comments

Your support helps us to tell the story

From reproductive rights to climate change to Big Tech, The Independent is on the ground when the story is developing. Whether it's investigating the financials of Elon Musk's pro-Trump PAC or producing our latest documentary, 'The A Word', which shines a light on the American women fighting for reproductive rights, we know how important it is to parse out the facts from the messaging.

At such a critical moment in US history, we need reporters on the ground. Your donation allows us to keep sending journalists to speak to both sides of the story.

The Independent is trusted by Americans across the entire political spectrum. And unlike many other quality news outlets, we choose not to lock Americans out of our reporting and analysis with paywalls. We believe quality journalism should be available to everyone, paid for by those who can afford it.

Your support makes all the difference.

BRUSSELS - The European Commission unveiled details of a pounds 3bn subsidy package for the recession-hit European car industry to help it build market share in the face of stiff competition from Japan, writes Sarah Lambert.

Martin Bangemann, the Commissioner responsible for industry, announced subsidies designed to stimulate car production following last year's 15.9 per cent fall in European car sales - the largest on record. Sales are expected to be flat this year and the downturn will cost an anticipated 40,000 jobs in the car industry.

Up to pounds 1.4bn will be available over five years for specialist re- training through new EU financing instruments aimed at helping a workforce adapt to industrial change. Grants worth a further pounds 980m are earmarked for cross- border projects and pounds 700m has been set aside for small and medium-sized businesses, many of which specialise in components for the car industry.

The commission is also lobbying governments to approve a proposed research and development programme worth pounds 9.17bn over four years, much of which would be spent on relevant projects such as the search for clean energy technologies.

Mr Bangemann said that in principle the European industry was able to compete. 'It has a few weaknessess but the future looks rosy,' he said, and predicted that by the end of the century Europe would produce 15 million cars a year against 12 million last year.

The commission is considering whether to prolong an exemption to EU competition rules which allows manufacturers to use selective distribution networks.

Join our commenting forum

Join thought-provoking conversations, follow other Independent readers and see their replies

Comments

Thank you for registering

Please refresh the page or navigate to another page on the site to be automatically logged inPlease refresh your browser to be logged in