DaimlerChrysler, the German-US car manufacturer, has been told by the Federal Supreme Court of Germany that it will have to write off a sum of several million euros which was lent to one of its suppliers, Lunke Ventra Automotive GmbH, when the latter faced bankruptcy. The court ruled that this kind of payment constituted a 'non-repayable subsidy'.
According to reports, the sum in question was Ђ4.55m; DaimlerChrysler had provided Lunke with these funds in order to allow Lunke to pay off debts with its own suppliers, and thus to continue supplying DaimlerChrysler and other car manufacturers.
These kinds of rescue measures are not unusual in the automobile industry, where there is a shortage of capital in many companies.
