EU commissioner car-industry demands for aid

EU commissioner car-industry demands for aid Berlin  - European industry is likely to seek government aid similar to that offered this week to banks, a European Union commissioner, Guenter Verheugen, said Monday.

Speaking on Deutschlandfunk public radio, Verheugen said, "The demands have already begun from the car industry."

The German commissioner said, "It won't be easy for politicians to explain to the workers why hundreds of billions of euros are available for the banking system, but not when an entire industry is in trouble."

Germany is expected to inject 70 billion euros this week into troubled banks and Britain is offering almost as much to its banks.

The automobile industry is one of Europe's key export sectors. German premium-car manufacturers have been hit by the downturn in the United States, their principal export market.

Willi Diez of the Institute of the Automobile Economy, last week forecast that some less economic car-manufacturing plants in Europe might have to close next year.

He forecast new car sales in western Europe to sag to 12.9 million units, or 1,4 million less than this year.

Sigrid de Vries, spokeswoman for the European auto makers federation ACEA, said last week, "The financial crisis also affects carmakers because it is generally more difficult to finance running operations." (dpa)