European automakers seek $54.5 billion in government loans

European automakers asked for $54.5 billion in government loans from the European Union this week, more than twice what Congress approved last week to help the U.S. auto industry.

The European automakers are pushing for the loan program in the face of increasingly stringent emissions requirements and feel shut out of the U.S. program, the European Automobile Manufacturers Association said in a statement late Monday.

Congress approved up to $25 billion in low-cost government loans for automakers and auto suppliers to modernize plants to build advanced technology vehicles that are at least 25 percent more efficient than required by new federal standards.

The U.S. plan gives preference to plants 20 years or older, although it doesn't exclude new plants, terms that favor Detroit's Big Three automakers. Only a couple of foreign-owned factories, including Honda Motor Co.'s Marysville, Ohio plant and a joint Toyota Motor Corp.-General Motors Corp. California venture are older than 20 years. More at Detroit News