Bail out approved

27th January 2009

A £2.3 billion support package for the UK’s ailing car industry has been unveiled by Business Secretary Lord Mandelson.
 
Lord Mandelson, who recently completed a tour of Britain's hard-pressed car makers, said that loan guarantees of up to £1.3 billion would be available to manufacturers and large suppliers from the European Investment Bank.
 
A further £1 billion will also be made available for ‘worthwhile investments’ for smaller companies.
 
The package will be made available to makers including Jaguar and Land Rover, as well as Bentley, Honda and Nissan.
 
Lord Mandelson warned manufacturers that loans would be given out on a ‘case-by-case’ basis – and that they would have to pledge to build greener cars to qualify.
 

He said: “The world’s car industry is at a turning point. Britain needs to be at the leading edge of developing low-carbon vehicles and manufacturing.”

He also called on regional development agencies to aid more work on ‘cleaner engines, lighter and hybrid cars and components for electric vehicles.”
 

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