The CEO of Renault SA, Carlos Ghosn, announced Wednesday that his company made a loss of EUR 343 M in 2008. Earlier he had suggested that the European Union should be prepared to quadruple loans for the car industry this year to EUR 15 B because of the economic slump, Bloomberg reported.

Automobile producers have applied for more than EUR 6 B euros in loans from the European Investment Bank (EIB) and the funds needed this year could "easily" total as much as EUR 15 B, according to Ghosn. Similar aid levels "may well be necessary" in future years as the transition to a low-emissions fleet continues, he said.

The auto industry is pressing EU governments and regulators for aid amid a slump that has led to production cutbacks. European sales of new cars fell 7.8 percent last year, the biggest drop in 15 years, as the recession and tighter credit hurt demand.

Auto production in Europe may fall 15 percent this year, said Ghosn. Global car sales, which totaled 63 million in 2008 and are projected to decline to 55 million in 2009, may drop more steeply to 50 million this year based on trends during the first five weeks, he said.

In response to the industry downturn last year, the EU promised to double EIB lending for green-transport projects including cleaner cars to EUR 4 B in each of the next two years. In addition, the European Commission, the 27-nation EU's regulator, is giving member states leeway to provide their own support within the framework of the bloc's state-aid limits meant to prevent distortions of competition.

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