The U.S. plan gives preference to plants 20 years or older, although it doesn't exclude new plants, terms that favor Detroit's Big Three automakers. Only a couple of foreign-owned factories, including Honda Motor Co.'s Marysville, Ohio plant and a joint Toyota Motor Corp.-General Motors Corp. California venture are older than 20 years. The program could also boost U.S. automakers, which are bringing small cars designed in Europe to the United States to sell to Americans looking for more fuel-efficient models. Ford Motor Co. said this week it may bring its Ka model to the United States. GM's Saturn Aura is based on GM's Opel Vectra. The association also said the global financial crisis and the sharp drop in consumer confidence are drying up vehicle sales in the United States and overseas and require government intervention. 'Carmakers face increasingly hesitant consumers and call on governments to respond, stimulate the economy, relieve the credit crunch and restore consumer confidence,' association President Christian Streiff, said in the statement. 'Only then will consumers have the means and confidence to invest in new vehicles.' The association represents 15automakers including BMW, Daimler AG, Renault, Fiat, Volkswagen AG as well as Ford of Europe, General Motors Europe and Toyota Motor Europe. The European automakers asked for 40 billion euros ($54.5billion) in low-interest loans, saying they would offer details of their proposal in the coming weeks. They face tough new emissions regulations by 2012 to reduce emissions to 130 grams of carbon dioxide per kilometer, down from 158 grams. The regulation is expected to be finalized by the end of the year. The European Parliament's environment committee approved the new car limits in September, but automakers want until 2015 to meet the new requirements. 'The proposed loans package will give an important and welcome signal to consumers and financial markets,' Streiff said. 'Governments can do more to support our already significant investments.' Sergio Marchionne, CEO of Italy's Fiat, , told Bloomberg News it is 'absolutely necessary that the European Commission do exactly the same thing (as in the United States.) It was $25 billion for the U.S.; in our case it's 40 billion (euros) because we have twice the capacity. We need a level playing field.' U.S. automakers face their own new regulations: at least a 40 percent hike in fuel efficiency requirements by 2020 to an industry-wide average of at least 35 miles per gallon. U.S. regulators say meeting the first five years of requirements will cost automakers $47 billion through the 2015 model year. The U.S. Energy Department said it could be 'six to 18 months or more' before any money is awarded under the auto loans program. It must issue final regulations by Nov.30. Detroit's Big Three plan to return to Congress next year to seek another $25 billion over the next two years and want Congress to loosen the rules to allow them to use the money for other projects beyond retooling. The European auto trade association also urged the EU to do more to get older, less fuel-efficient cars off the roads by increasing a program to scrap older cars. In the EU, cars older than eight years account for 36 percent of total vehicles -- in part because cars are more expensive than in the United States. The association noted that if all of the older cars were taken off the roads and replaced with new cars, the EU would annually generate 20 fewer megatons of carbon dioxide, or 4.5percent of total car emissions. High fuel prices have shifted more Europeans into diesel vehicles and smaller cars. Automakers have cut carbon dioxide emissions by 14 percent over the last decade. European automakers are cutting production in the face of tough economic conditions and declining sales. European sales fell 16percent in August and are down about 4 percent this year. JD Power and Associates estimates European sales will fall to their lowest levels this year since 1995. You can reach David Shepardson at (202) 662 - 8735 or dshepardsondteom.