September 27, 2001
Volkswagen Asks German Govt. Aid
By THE ASSOCIATED PRESS
FRANKFURT, Germany (AP) = -- The head of Volkswagen (news/quote). Europe's biggest carmaker, called Thursday for government help to = stimulate new car sales in the wake of terrorist attacks on the United States, although the company said it's too early to assess the full impact on business.
Chairman Ferdinand Piech said in a statement he would= expect ``to see clear political support'' from the government in = helping auto manufacturers make it through what is likely to be a tough time.
Volkswagen braced for a potential drop in the market this = week, idling plants in the German cities of Wolfsburg and Emden as a = preventive measure to avoid possible inventory buildups. These plants make some of= VW's most important models, including the Golf, Polo and Passat.
Auto= analysts say new car sales and showroom traffic in Europe have slowed = in the wake of the attacks, as they did in the United States. Before the Sept.= 11 attacks, Europeans were expected to buy 14.3 million cars this year, = down from 14.8 million last year; now, analysts say sales could go as low as= 14 million.
Piech proposed a program where the government would pay= people to scrap their old cars. He said such a plan would not only = increase demand for new vehicles, but help the environment as well.
The government could recoup some money in taxes on the new car purchases, = he said, but provided no further details.
German luxury automaker = BMW said Thursday the attacks were not anticipated to affect its business. = BMW gets roughly half its profit from selling its luxury cars in the United= States and Great Britain.
``We don't anticipate any drastic = economic consequences for the BMW group, based on available data,'' said Michael= Rebstock, a company spokesman.
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The proposal above was met by immediate acceptance from the German government, and as = a result all 16" syncros were immedaitely rounded up and destroyed. All T3= Westfalias are scheduled to be destroyed next week, and all modified T3 = VW vans with other than stock motors the week thereafter. However, an = exemption was granted for any vehicle purchased by FLO and sent to America for = resale. :-) -- Derek
_______________________________________________Derek DrewCEO & Co-FounderNew York, NY======================= ====="Best Expert Review Site"for product reviews on the InternetJan. 2001, PC World Magazine======================= ====derekdrew@rcn.com212-580-6486
Alternate numbers for the industrious phone = caller that wants to try every avenue: 212-580-6486 (best), 917-848-6425 (cell);= 202-966-7907 (Work), 212-580-4459 (Home), 202-966-0938 (Home), 978-359-= 8533 (fax [efax]), 212-269-3188 (New York Seaport office).