Business NEWS
BMW automobiles may apply for state aid!
By Amarendra Bhushan for CEOWORLD Magazine Updated:January 20, 2009
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After American automakers recently secured a multi-billion dollar loan guarantee from the federal government but their counterparts across the pond haven’t been so lucky Germany’s BMW (BMWG.DE), the world’s largest premium car maker, is looking into applying for state guarantees to back up its borrowings, the Bild Zeitung newspaper reported on Tuesday.
According to a new report, BMW is now considering applying to the German government for a state guarantee to back up its borrowings. The news was first reported by Bild Zeitung, which claims BMW Group – which includes the sales of BMW, Mini and Rolls-Royce – is reeling after its sales worldwide dropped 4.3% for 2008. Late last year, Volkswagen also approached the German government seeking guarantees for its financial divisions to cover refinancing of car loans in December.
Incidentally, BMW was one of the most vocal carmakers to criticize the aid package being offered to the Detroit 3. The German carmaker said the aid package would only serve to “distort competition” in the industry and that it should be offered to more companies.
Other countries around the world to start offering state aid to their local automotive industries include Australia, Canada, Spain, and the UK.
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