European Central Bank loans may have subsidized the Volkswagen

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European Central Bank loans may have subsidized the Volkswagen

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The the big apple Times reports the ecu Central Bank might have inadvertently helped consumers trying to require home a replacement Volkswagen Up! secure low-interest loans. Volkswagen money Services was one in all several establishments that took advantage of the €1 trillion the central bank put aside to be loaned out at only 1 % interest. Volkswagen borrowed €2 billion (about $2.6 billion USD) of that money, and plans to supply the money to consumers within the sort of loans with low 3 to four % interest. whereas the goal of the low-interest loans was originally to stabilize unsure markets, automakers and alternative industries are taking advantage of the effectively free money.

Mercedes Bank has already taken advantage of the generous terms, and PSA Financing, a unit of Peugeot and Citroën, has created mention of doing a similar in an effort to stave off looming poor sales. in line with The the big apple Times, the ecu auto business is also facing down its second downturn since 2009. Registrations for brand spanking new vehicles were down eight.3 % between January and February of this year compared to a similar amount in 2011.



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