European Auto Companies Need a Bailout Too

American carmakers aren’t the only ones hurting during this financial crisis. In Europe, car sales have plummeted and auto companies there are in danger of running out of money. European automakers have asked the European Union for 40 billion euros, which is about 50.5 billion U.S. dollars, to help them stay in business during the coming months.

PSA Peugeot-Citroen, the second largest European carmaker behind Volkswagen, announced it would cut 3,550 jobs in France in the near future. Peugeot-Citroen has already cut 7,400 jobs in 2008. The company says it expects sales to drop at least 10% next year, according to Reuters and USA Today. Opel, a European brand owned by GM, is pleading for aid from the German government.

Ford, GM and Nissan have all recently announced plans to cut European production.