Bumpy future road for Europe's car makers discussed

The future of Europe's troubled car market and 12 million jobs was under scrutiny Tuesday. Sales are falling because of the economic crisis and more restricted access to credit. They are already down 8% on last year and are expected to fall a further 20% by the end of the year. Major French and German car companies have plants outside their own countries and many MEPs are concerned that they may be tempted to move them and their jobs "home".

Around 2 million people are directly employed in car manufacturing across the EU, with a further 10 million jobs among suppliers and dealers. In the EU's biggest economy - Germany - one in seven jobs is related to the automobile sector.
 
Public funds - but in return for investment
 
There is growing political debate about the extent to which public funds should be used to bail out carmakers. In Tuesday's debate Robert Goebbels of the Socialist group stressed the need to safeguard an industry that employs millions and is the world's "technological leader".

Green MEP Rebecca Harms said that tough conditions should be imposed before any public money is used. She stressed the need for the companies to guarantee "employment, innovation and qualifications for workers".
 
Industry Commissioner Gunther Verheugen said any protectionist urges by governments to protect the industry must be quashed. He said Europe and its carmakers should invest in cleaner, more efficient cars to cope with the 21st century market. He also called for help for people made redundant because of changes in the car industry.
 
Response to GM cuts should be coordinated
 
In this he was supported by German Liberal Jorgo Chatzimarkakis, who said "we need a better connection between public aid and new technologies." German Christian Democrat Werner Langen agreed, saying that the industry should be prepared for the future.
 
Mr Verheugen called on European governments to coordinate their dealings with America's General Motors. Facing bankruptcy the US giant is keen to offload its European operations - Opel (Vauxhaul in the UK) and Saab - which employ 200,000 people.