Aid Packages For Europe`s Auto Industry

Governments from the United States, Asia and Europe are being pressured to help their carmakers.

French President Nicolas Sarkozy is expected to raise the issue of support for Europe's auto industry at an EU summit on Sunday. 

Governments from the United States, Asia and Europe are being pressured to help their carmakers, which have been hurt by the economic downturn, falling demand and tight credit.

The European Commission has backed national car aid plans by France and Britain and is holding talks with Sweden, Germany and others. Following are some details:

* BRITAIN -- Said in January 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 a further 1 billion pounds of loans to back investments not eligible for support from the European lender. Britain said on Friday the scheme had won European Commission approval.

* FRANCE -- Pledged loans of 3 billion euros each to car makers PSA Peugeot Citroen and Renault in return for an unwritten pledge not to close production sites in France. The 6-percent interest rate loans are designed to fund investment into clean vehicle technologies.

* 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. Measures include incentives worth 2,500 euros for new car purchases.

* ITALY -- Announced a stimulus package for cars on Jan. 5 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.

* SPAIN -- Approved on Feb. 13 a 4 billion euro package that includes 1.2 billion euros in state credit for car purchases during 2009 and 2010 and aid to help car and vehicle part makers upgrade plants. The scheme is part of the government's 70 billion euro economic stimulus plan.

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