Germany's auto market is declining at an unprecedented pace, with car sales in 2009 expected to drop to those of 1990.
Meanwhile, the nation's car manufacturers decry the punitive scale in the current EU carbon emissions proposal.
Germany's automakers are not alone in their plight.
Volkswagen itself has warned that the current sales environment is "difficult", while Daimler, owner of Mercedes-Benz, said the situation is "very challenging indeed".
German car sales are expected to slip to 2.9 million next year, down from the expected 3.1 million for 2008, says the trade body.
Car sales are also lower across Europe, with Italy's Fiat warning that its 2009 profits could fall by 65%.
Meanwhile, the Swedish government has said it would be prepared to offer financial support to Ford subsidiary Volvo, and GM unit Saab.
However, it said it would not be interested in nationalising the two companies.
ortugal's government on Wednesday announced a 200 million euro credit line for auto and car parts exporters as part of a support package to help the industry through a time of crisis and avoid job losses.



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