France to fund 'green' vehicle research and development
Thu 30 October 2008
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The French President has announced support worth €400 million ($550m) over four years for the development and construction of low-carbon vehicles. Speaking at the Paris Motor Show, Nicolas Sarkozy said the money is intended "exclusively for the research and development of non-polluting vehicles, that is vehicles with the least possible emission of carbon dioxide, whether electric cars or hybrids." The money will come from funds already ring-fenced for environmental projects.
In his speech, Mr Sarkozy also said he would ask the European Commission to loosen regulations on state aid to enable EU governments to better support policies that benefit the environment. In particular as "The U.S. Treasury is preparing to grant 25 million dollars in long-term loans at unbeatable rates to U.S. carmakers for them to renovate their plants that are more than 20 years old," Sarkozy said.
European carmakers have called for support for EU policymakers to consider a €40bn "low-interest loans package" for car buyers, and further incentives to replace vehicles that are more than eight years old. ACEA says that government support would help the industry to meet planned CO2 regulations and also provide a more even playing field following the announcement of low interest loans from the US Government to support the struggling US industry.
Recent reports (30 October) suggest that 'soft loans' worth up to €40bn may be provided through the European Investment Bank to the motor industry to help develop more fuel-efficient technologies. Following a meeting with industry representatives, the EU Industry Commissioner Günter Verheugen said that the industry needs to be able to compete on fair terms in overseas markets. The Financial Times reports that car makers are already in discussions with the EIB about the terms of the loans.
Responding to ACEA's call for government support, Jos Dings the Director of T&E said: "The EU should be very clear, not a cent of public money should be loaned until the car industry drops its attempts to water down EU fuel efficiency legislation."
Mr Sarkozy's earlier announcement came against the backdrop of French carmakers Renault-Nissan and PSA Peugeot Citroen signing separate agreements with the largely state-owned energy supplier EDF to establish programmes for the commercialization of electric cars. The agreement between EDF and Renault-Nissan calls for the development of batteries and the construction of a network of battery charging stations throughout France by 2011.
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