Earlier today we told you how Jaguar was urging the UK Government for financial aid to prevent the automotive industry slumping into recession – and now European carmakers are joining the call for more support.

In an effort to meet green car targets, car manufacturers are urging the European Commission for a €40bn (£32bn) “green” bail-out plan so they can meet tough EU limits on carbon emissions.

Last week the European Parliament’s environment committee overturned a decision by MEPs on the industry committee and voted for a 17 per cent reduction in car emissions by 2012 – heaping further pressure on car manufacturers who are already feeling the pinch from reduced sales.

Speaking at the Paris Motor Show, Sergio Machionne, Fiat’s chief executive, said that the European Automobile Manufacturers’ Association (ACEA) would be approaching the commission for a loan to help it modernise plans and produce more environmentally friendly cars. The loan is likely to be similar to the $25bn loan approved by US Congress for the American motor industry last week.

The approach is said to have been approved unanimously by the 15 members of the ACEA.

Do you think the automotive industry deserves this level of support to meet green targets or should it be left to fend for itself? Let us know by leaving a comment below.