Motor industry relies on 'green subsidies'

Date: 2/3/2010

Challenges for the automotive industry include leading the transition to a low-carbon, sustainable mobility, according to Dieter Zetsche, president of the European Automobile Manufacturers Association.

"The motor industry should be seen as a partner in problem solving, eager to combine forces with other stakeholders to manage together what none us of can manage alone," said Mr Zetsche.

His comments emerge as the Geneva Motor Show featured mostly petrol-electric or all-electric cars, which were conceived during less difficult financial times.

Carmakers have been looking to get back their investments by turning to their governments to implement incentives for people who buy greener cars or to support development programs.

The UK government has said it will provide up to £5,000 of assistance to help consumers buy electric cars. Electric car manufacturer Tesla has recently secured a £305 million loan from the US Department of Energy to build a new factory in California, according to BBC News.

Mr Zetsche goes on to add that the motor industry is heading in the right direction by providing both new jobs and emissions reductions to taxpayers.