German auto officials suffer loan envy

And the indignation about the auto loans is laughable when you consider how much German auto companies have gotten in tax breaks in the United States. BMW AG, for example, earlier this year got a $15 million grant from South Carolina for site improvements for its plant there and millions more in tax breaks over time. Tennessee is offering millions to Volkswagen for the plant it is building in Chattanooga. Protectionism no answerTo be sure, engaging in games of protectionism isn't the answer. Auto companies everywhere need global sales to stay afloat. And given the economic crisis that is sweeping markets everywhere, they also need a boost now and again. The loan program -- the parameters of which, by the way, have yet to be finalized by the U.S. Department of Energy -- doesn't exclude German automakers from applying for loans. Certainly it looks like it's going to favor General Motors Corp., Ford Motor Co. and Chrysler LLC. They don't pay big bucks to legislative lobbyists for nothing, after all. But these loans will be paid back -- with interest -- and they're just a drop in the bucket compared with what's really needed to address the unfunded fuel economy mandates the U.S. Congress has imposed on the auto industry. EU asked to helpSimilar problems exist in Europe, and on Tuesday, automakers there asked the European Union to do its part, too. They're seeking more than $54 billion for a loan package to help deal with what they consider unattainable emissions standards imposed by the EU. There's merit to seeing that happen and automakers, consumers and workers will benefit if it is structured properly. A better solution, here and there, would be to get regulators to put a cork in their unfettered emission mandates that they insist are necessary to save the planet but also are so expensive that research and development suffers throughout the company. While we know that is not going to happen, something's got to give and the whining about what the country next door is doing has got to stop. Auto Editor Manny Lopez's column runs Wednesday. Reach him at [email protected].